Meta Shares Fall Below $600 as It Accelerates AI Pivot

Overview

• Meta stock has slipped under $600, roughly 25% below a near-$800 high reported earlier this year.
• Fourth-quarter advertising revenue reached $58.1 billion, up 24% year over year, with a 41% operating margin and nearly $25 billion in operating income.
• Earnings power lagged revenue growth as costs and expenses jumped 40% year over year, compressing margins and slowing gains in EPS and free cash flow to about $14.1 billion.
• CEO Mark Zuckerberg described a major acceleration in AI and said he expects 2026 to see further acceleration across several fronts.
• CFO Susan Li said Meta is reinvesting business strength into AI infrastructure and talent, while separate reporting says the company has planned sizable workforce reductions and organizational changes tied to the shift.