Meta Platforms Inc (NASDAQ:META) shares are plummeting on Thursday even after the company delivered solid first-quarter results. The pressure is coming from a jump in full‑year CapEx guidance and a quarter‑over‑quarter decline in family daily active people.
- Meta Platforms stock is showing notable weakness. Why is META stock falling?
Inside Meta's Q1 Results
Meta topped expectations on both revenue and earnings, but the market is focusing on the company's decision to raise FY26 capital spending to a range of $125 billion to $145 billion, up from prior guidance of $115 billion to $135 billion.
At the same time, Meta reported a small sequential decline in family daily active people due to internet disruptions in Iran and WhatsApp restrictions in Russia.
Meta reported first-quarter revenue of $56.31 billion, beating the $55.45 billion estimate. Adjusted EPS came in at $7.31, ahead of the $6.78 consensus. Revenue grew 33% year‑over‑year, supported by a 19% jump in ad impressions and a 12% increase in average price per ad. Meta also said it expects second-quarter revenue between $58 billion and $61 billion, roughly in line with expectations.
Following the print, multiple analysts lowered price targets on the stock, which appears to be adding to the selling pressure on Thursday.
- Truist Securities analyst Youssef Squali maintained a Buy and lowered the price target from $900 to $840.
- Cantor Fitzgerald analyst Deepak Mathivanan maintained an Overweight and lowered the price target from $850 to $750.
- Guggenheim analyst Michael Morris maintained a Buy and lowered the price target from $850 to $800.
- Piper Sandler analyst Thomas Champion reiterated an Overweight and lowered the price target from $880 to $800.
A Chart Trying To Heal, Not Yet Ready To Lead
The moving average backdrop is mixed in a way traders know well: the 20-day SMA is above the 50-day SMA (a near-term positive), but the death cross that formed in December 2025 (50-day SMA below the 200-day SMA) keeps the longer trend conversation cautious. That combination often shows up when a stock is attempting to stabilize, but hasn't reclaimed the kind of longer-term leadership that institutions like to pay up for.
Momentum, however, is trying to argue back. The moving average convergence divergence (MACD) is above its signal line with a positive histogram, which leans toward improving momentum despite Thursday's hit. In practical terms, it suggests the prior downside pressure has eased, even if price still hasn't fought its way back above the levels that would make the chart look "clean" again.
Technicians will likely keep the map simple: $673.00 is the prior ceiling where rallies have recently stalled, while $520.50 is the area where buyers have tended to show up near the lows. In a market that's rewarding risk broadly, those lines can quickly become a referendum on whether this is just a shakeout, or something more persistent.
Meta Shares Are Falling
META Price Action: Meta shares were down 8.17% at $614.61 at the time of publication on Thursday, according to Benzinga Pro.
Image: Shutterstock
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