Meta Platforms posts 33% revenue jump as shares fall 29% on rising AI spending

Meta Platforms reported first‑quarter 2026 revenue of $56.3 billion, a 33% year‑over‑year increase driven by a 19% rise in ad volume and a 12% lift in average ad prices. Daily active usage grew 4% to 3.56 billion people, and operating margin held at 41% with operating income of $22.9 billion.

Despite the strong top‑line, the company's stock slipped about 29% from its August peak, trading near $565 after falling from around $795. The decline is linked to Meta’s announced capital‑expenditure plan of $125‑145 billion for 2026—up from the prior $115‑135 billion range—to fund AI data‑center, chip and power needs, with total 2026 expenses projected at $162‑169 billion.

Institutional investors continued to adjust positions: Vanderbilt University raised its Meta stake by 16% to 15,186 shares worth roughly $8.7 million, making the holding its ninth‑largest. Other funds such as First National Bank Sioux Falls and Levin Capital Strategies also modestly increased their holdings.