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Meta Platforms (META) stock has underperformed the broader equity market so far in 2026. The stock’s underperformance reflects investor concern about the social media giant’s increasing capital expenditure on artificial intelligence (AI).
Meta’s substantial AI-related investments have pushed capital expenditures higher. In the second quarter, the company reported $31.1 billion in capital expenditures, including principal payments associated with finance leases. Much of this spending was directed toward servers, data centers, and network infrastructure needed to expand its AI capabilities. While these investments could strengthen Meta’s long-term competitive position, investors remain focused on how quickly they can generate meaningful financial returns.
