Meta Earnings Surge: Stock Rises on Revenue Beat, Investors Assess Capex Spending

Meta Earnings Surge: Stock Rises on Revenue Beat, Investors Assess Capex Spending

Meta has reported a significant increase in its earnings, prompting stock movements as investors sort through the implications of higher capital expenditures. The social media giant generated $59.89 billion in revenue for the fourth quarter, exceeding analysts’ expectations of $58.41 billion.

In terms of earnings per share, Meta achieved $8.88, surpassing predictions of $8.19. However, the focal point for many investors has been the company’s declared capital expenditure (capex) plans.

Capital Expenditure Forecast

Meta revealed that it anticipates substantially higher capex than previously forecasted. Investors were surprised by the guidance for 2026, which is now estimated between $115 billion and $135 billion. This is significantly above the earlier estimate of $110.62 billion.

Market Reactions

Following the earnings announcement, Meta’s stock rose approximately 3% in after-hours trading. However, shares closed slightly lower in the regular trading session on Wednesday.

Key Financial Highlights

  • Q4 Revenue: $59.89 billion
  • Analyst Estimate: $58.41 billion
  • Earnings per Share (EPS): $8.88
  • Earnings Estimate: $8.19
  • 2026 Capex Guidance: $115 billion to $135 billion
  • Previous Capex Estimate: $110.62 billion

Investors will continue to monitor Meta’s spending and its impact on future growth. For the latest updates on Meta’s performance, stay tuned to Filmogaz.com.