Overview
- Shares plunged about 11.4% on Friday, trading down to an intraday low near $71.67 and closing around $71.88 after Jefferies and Citigroup cut ratings to Hold.
- Two major banks downgraded the stock midweek, a move that intensified selling pressure on a name that had already pulled back from its 52-week high.
- Management’s guidance for $31–$35 billion in 2026 capital spending is the central investor worry given trailing-12-month revenue near $6.2 billion and Q1 GAAP losses with EPS of -$1.40.
- Insider sales have been heavy, with roughly 17.07 million shares sold in the last 90 days worth about $1.98 billion, raising governance and timing questions for investors.
- Analyst coverage remains divided with a moderate buy consensus and an average target near $136, but near-term uncertainty now hinges on Meta’s capacity plans, any memory-chip exposure or hedges, and early signs that capex is translating into margin or cash-flow gains.