Overview
- Meta guided 2026 capital expenditures to $115 billion to $135 billion for data centers, GPUs and other AI infrastructure, nearly doubling planned 2025 outlays and stoking share volatility.
- Advertising fundamentals remain strong, with Q4 ad revenue rising 24% to nearly $60 billion on Reels engagement and AI-powered ad tools.
- Analysts remain broadly positive with a consensus 12‑month price target of $844 and 42 of 49 ratings at Buy, pointing to roughly 31% upside from recent levels.
- Selective institutional buyers stepped in on weakness, including Bill Ackman’s Pershing Square, which disclosed 2.67 million Meta shares valued at over $1.76 billion in Q4 2025, even as overall hedge fund exposure declined over the quarter.
- Meta expanded AI content access on March 4 through a multi-year News Corp licensing deal worth up to $50 million annually for at least three years to train models and power products.