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Meta Platforms (META), which not long ago was the year's best-performing constituent of the “Magnificent Seven” and briefly joined the $2 trillion market cap club, has since pared gains and has lost nearly a quarter of its value from the peak. The stock is in a bear market now and is barely in the green for the year, as it plunged below $600.
The stock fell below the $700 price level following the Q3 2025 earnings release last month as the company raised the midpoint of its 2025 capex guidance. It further discussed further “upward pressure” on capex and expenses in 2026 and said that the outlay will be “notably larger in 2026 than 2025.” Markets have become fairly apprehensive of tech companies' burgeoning artificial intelligence (AI) capex, and Meta shares fell following the confessional despite an otherwise strong earnings report.
