META Q1 2026 Earnings: Massive Beat but Market Punishes AI Spending → What Do You Think?
u/TowelNo234 ·
Reddit — r/ValueInvesting
· April 29, 2026 at 23:00
· ⬆ 18 pts
· 💬 39 comments
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Summary
Meta’s Q1 beat on revenue (+31% YoY) and EPS, but raised 2026 CapEx guidance to $125-145B, causing a 5-6% after-hours drop.
The author believes the selloff is overdone and sees the AI spending as a strategic long-term investment; they view the dip as a buying opportunity.
Quality assessment: Partially speculative; the post provides data (revenue, EPS, CapEx) but lacks deep analysis of margins or competitive positioning. Author’s own stated short position contradicts the bullish thesis, reducing coherence.
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META just released its Q1 results after the market close:
* **Revenue**: $56.3 billion (+31% YoY) → **Beat**
* **EPS**: $10.44 → **Strong Beat**
* **2026 CapEx Guidance**: Raised to **$125-145 billion** (significantly higher than expected)
The stock is down **-5% to -6%** in after-hours trading. Investors seem worried about the massive AI costs.
Honestly, I think the market’s reaction is **overdone**. META delivered exceptional advertising growth (+31%), proving its core business remains extremely strong and profitable. Yes, the AI expenses are huge, but they’re strategic: Llama, the MTIA chip, and the ambition to lead open-source AI. It may pressure margins in the short term, but long-term I believe this positions META as one of the big winners of the AI era.
For me, this post-earnings dip looks more like an **opportunity** than a structural problem.
I took a solid short position with Bitget leverage. But honestly, I think META remains solid.
Now my eyes are turning to the upcoming results from **GOOGL, AMZN, and MSFT**.
Curious to hear your thoughts on META next.