Meta's Capital Expenditures May Continue to Weigh on Stock Performance
As Meta prepares to report its second-quarter earnings, investors are closely watching the company’s capital expenditures (capex) plans for this year and beyond. Recent concerns have been heightened by Alphabet’s unexpected capex increase, which has raised fears that Meta may also raise its guidance above current estimates of $125-$145 billion for 2026. Deutsche Bank analyst Benjamin Black notes that Meta's stock performance has lagged over the past year amid rising capital spending. He projects potential increases in capex to around $210–$215 billion by 2027 and up to $265 billion in 2028, which could intensify pressure on investors for cost control. The focus is also shifting toward whether Meta’s investments will yield direct revenue streams through third-party cloud services rather than relying solely on indirect benefits from ads and user engagement.
Topics: Alphabet comparison capex investor expectations Meta