Meta Platforms saw its stock drop about 6% after hours on April 29, 2026, as disappointing user growth and capital expenditures overshadowed a revenue beat. The company reported first-quarter revenue of $56.3 billion, exceeding analyst expectations of $55.45 billion. However, investor sentiment soured as daily active users (DAP) fell short of projections.
The company’s DAP came in at 3.56 billion, below the anticipated 3.62 billion. This shortfall raised eyebrows, especially in the context of robust momentum in technology stocks—evidenced by the Nasdaq Composite being up 14% for the month through Wednesday’s close. Mark Zuckerberg, Meta’s CEO, acknowledged the challenges ahead.
Key financial figures:
- First-quarter revenue: $56.3 billion
- Daily active users: 3.56 billion
- Stock drop: approximately 6%
- Capital expenditures: $19.84 billion
- Projected capital expenditures for the year: $125-145 billion
- Full-year expense outlook: $162-169 billion
- Total employees as of March 31: 77,986
Capital expenditures totaled $19.84 billion for the quarter—significantly below the average estimate of $27.57 billion. Despite this discrepancy, Meta raised its full-year capital expenditure guidance to a range of $125 billion to $145 billion, indicating a long-term commitment to expanding its AI infrastructure.
Zuckerberg stated, “I expect that we will invest a significant amount of capital over the coming years to pursue that opportunity.” This statement reflects Meta’s ongoing strategy to enhance its technological capabilities amid fluctuating user engagement.
As analysts dissect these developments, many are left pondering what this means for Meta’s future in an increasingly competitive landscape. Observers note that while revenue growth remains strong, sustaining user engagement will be crucial for maintaining investor confidence moving forward.