Meta Platforms (META) shares dropped roughly 10% on Thursday, erasing about $175 billion in market value. A higher 2026 capital expenditure forecast of $125 billion to $145 billion triggered the selloff.

The decline marked the stock’s largest single-day percentage drop in roughly six months. It came despite Q1 2026 earnings that exceeded Wall Street estimates on both revenue and profit.

Capex Hike Spooks META Investors

As of this writing, META stock was trading for $606.43, down by almost 10% in the last 24 hours, wiping out up top $175 billion from its market cap today alone.

The new spending range sits roughly 7% above the previous January guidance of $115 billion to $135 billion.

Chief Financial Officer Susan Li attributed the increase to higher memory-chip pricing. She also cited additional data center costs tied to artificial intelligence (AI) infrastructure.

JPMorgan analyst Doug Anmuth downgraded Meta to Neutral and cut the bank’s price target to $725 from $825. The note flagged intensifying full-stack AI competition and a more challenging path to returns.

Q1 capex alone reached $19.8 billion, in line with the broader Big Tech race in AI infrastructure.

Earnings Beat Overshadowed

Meta reported revenue of $56.31 billion, up 33% year over year, the strongest quarterly growth since 2021. Net income reached $26.8 billion, or $10.44 per diluted share. An $8 billion one-time tax benefit tied to U.S. Treasury R&D guidance lifted that figure.

Ad revenue stayed strong as AI-powered content recommendations boosted engagement on Reels and video.

Yet the reaction echoed earlier sell-offs after prior Meta capex hikes. The pattern repeatedly overshadows strong fundamentals with spending fears.