Meta’s stock plunged 6% after disappointing user growth and capital expenditures overshadowed a revenue beat. On April 29, 2026, the company reported first-quarter revenue of $56.3 billion, exceeding analyst estimates of $55.45 billion. However, daily active users (DAP) totaled 3.56 billion, falling short of the projected 3.62 billion.
Key financial figures:
- First-quarter revenue: $56.3 billion
- Daily active users: 3.56 billion
- Percentage drop in stock: 6%
- Capital expenditures: $19.84 billion
- Average estimate for capital expenditures: $27.57 billion
Investors reacted negatively to the news, leading to a significant drop in Meta’s stock after hours. Capital expenditures for the quarter amounted to $19.84 billion, which was below expectations.
Meta raised its full-year capital expenditure guidance to between $125 billion and $145 billion while maintaining its expense outlook at between $162 billion and $169 billion. Headcount rose by 1% year-on-year, reaching 77,986 employees as of March 31.
The company plans to invest heavily in AI infrastructure over the coming years. Mark Zuckerberg stated, “I expect that we will invest a significant amount of capital over the coming years to pursue that opportunity.” This statement underscores Meta’s commitment to enhancing its technology capabilities.
Despite the challenges with user growth and spending, Meta continues to navigate a favorable environment for technology stocks, with the Nasdaq Composite up 14% for the month through Wednesday’s close.
The market’s current investor sentiment reflects concerns over Meta’s ability to sustain revenue growth amid rising operational costs and competition in the tech sector.
