As Meta Stock Pulls Back, It’s Valuation Becomes Harder to Ignore

Meta Platforms (META) has had a disappointing start to 2026. The social media giant's stock is down 10% year-to-date (YTD) and now trades roughly 25% below its 52-week high. The decline reflects investors’ concern around Meta's aggressive spending on artificial intelligence (AI) infrastructure and uncertainty about when those investments will begin generating meaningful returns.

The company recently raised its 2026 capital expenditure forecast to between $125 billion and $145 billion, up from its previous guidance of $115 billion to $135 billion. Management cited higher component costs and investments to support future AI capacity.