META grew revenue 27% with 3.6 billion daily users, but AI capex crushed free cash flow 91% and compressed operating margins to 31%. Zuckerberg reframes $145 billion in annual AI capex as an appreciating asset, with Advantage Plus already generating a $75 billion annual revenue run rate. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Meta didn't make the cut.
Grab the names FREE today. Meta Platforms (NASDAQ:META) is caught in a strange moment. The advertising machine is humming, daily users just hit 3.60 billion, and CEO Mark Zuckerberg is pouring capital into AI at a pace no other consumer internet company can match.
Yet shares are down 13.66% year to date and 27.31% over the last year. The market is punishing the AI bill. Can Meta shares reach $900 in 2026?
Here is my read on the math. The business fundamentals remain intact. Q2 2026 revenue of $60.80 billion beat estimates, but EPS of $6.18 missed by 14.42% and snapped a six-quarter beat streak.
Operating margin compressed to 31% from 43%. Free cash flow collapsed 91.31% to just $784 million as capex hit $30.12 billion. Shares have fallen 11.93% in the past month and 4.36% in the past week.
With a beta of 1.24, every AI capex headline swings the stock harder than the tape. A California legal fight described as carrying "astronomical" consequences is not helping sentiment either. Analysts carry an average target of $754.14, with 8 strong buys, 47 buys, 7 holds, and zero sells.
Extract — continue reading at the source.
