Meta Platforms (META) has been one of the weaker-performing “Magnificent Seven” stocks in 2026, as investors grow increasingly concerned about the company's massive AI spending. Billions of dollars are flowing into data centers, networking infrastructure, and advanced AI chips, raising questions about when these investments will generate meaningful returns.
Those concerns intensified after Meta's latest earnings report. Meta recently delivered mixed Q2 financials. However, its stock came under selling pressure following the earnings report. Investor sentiment worsened after management issued a softer-than-expected revenue outlook for the third quarter amid the company’s significant capital expenditure on AI.