Meta Plunges 8% Pre-Market as AI Capex Raised to $145 Billion Spooks Investors

News Editor 01

2026-07-22 17:00:14

Meta reported strong Q1 earnings but hiked 2026 AI capex forecast to $145B, sending shares down over 8% pre-market. EU antitrust probe and FTC lawsuit add pressure.

MetaAI capexpre-marketantitrustearnings

Meta Platforms (META) tumbled more than 8% in pre-market trading even after beating Q1 earnings estimates. The company raised its full-year 2026 AI capital expenditure ceiling to $145 billion, alarming investors despite strong revenue and profit figures.

Revenue Beat Overshadowed by Capex Hike

Q1 revenue hit $56.31 billion, up 33% year-over-year and above the $55.45 billion consensus. Adjusted EPS of $7.31 also topped estimates of $6.78. But the new capex range of $125 billion to $145 billion—up from $115-135 billion—triggered a selloff. Meta cited higher component prices and extra data center costs for future capacity. This follows Amazon's similar AI investment shock.

Regulatory Headwinds Mount

Beyond the earnings reaction, Meta faces an EU antitrust probe into restricting third-party AI chatbots on WhatsApp—carrying a potential fine of up to 10% of global revenue. Separately, the FTC's antitrust lawsuit over Instagram and WhatsApp acquisitions is set for trial in 2026.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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