Meta Stock Down 21% from All-Time High Amid AI Spending and Investor Skepticism - News and Statistics

Jun 3, 2026

Meta Platforms has not kept pace with the broader technology sector’s recent rally. According to a report from Yahoo Finance, the social media company’s stock is trading 21% below its all-time high of $796, which was reached last August, as of May 29.

AI Spending Drives Investor Concerns

The primary factor behind the decline is spending related to artificial intelligence. Over the past three quarters, a recurring pattern has emerged: management raises its capital expenditure forecast, investors grow uneasy, and the share price falls. Most recently, Meta announced plans to spend between $125 billion and $145 billion on capital expenditures in 2026, an increase of $10 billion from its prior guidance.

Critics have drawn comparisons between these spending plans and Meta’s previous large bet on the metaverse, which ultimately proved unsuccessful. However, the report notes that this comparison overlooks significant differences.

AI Delivers Measurable Results

The key distinction between Meta’s AI investments and its metaverse spending is that AI is producing quantifiable returns. The company’s AI-powered recommendation algorithms have contributed to better engagement metrics and higher advertising revenue. Its Advantage+ suite of tools enables businesses to optimize and automate campaigns, while generative AI features allow for faster ad creation and a continuous flow of fresh content.

In the first quarter of 2026, ad impressions rose 19% and the average price per ad increased 12% year over year. Ad revenue jumped 33% to $55 billion, a meaningful gain given that advertising accounts for 98% of Meta’s total revenue. In contrast, the metaverse—housed within the Reality Labs division—remained a financial drain, losing $19.2 billion in 2025 and $4 billion in the first quarter of 2026.

Multiple Paths to Success

The report indicates that Meta has several potential avenues for monetizing its AI investments. Scaling up advertising revenue and selling subscriptions to Meta AI are two primary objectives. Additionally, the company could sell computing capacity to other AI firms. Meta is the only one of the four major hyperscalers without a cloud computing business; Alphabet, Amazon, and Microsoft all operate profitable cloud services.

Chief Executive Officer Mark Zuckerberg discussed this possibility at Meta’s annual shareholders meeting last week. He noted that companies have expressed interest in purchasing computing capacity from Meta, and if the company ends up overbuilding its infrastructure, that option would be available.

1. INTRODUCTION

Making Data-Driven Decisions to Grow Your Business

REPORT DESCRIPTION
RESEARCH METHODOLOGY AND THE AI PLATFORM
DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
GLOSSARY AND SPECIFIC TERMS

2. EXECUTIVE SUMMARY

A Quick Overview of Market Performance

KEY FINDINGS
MARKET TRENDS This Chapter is Available Only for the Professional EditionPRO

3. MARKET OVERVIEW

Understanding the Current State of The Market and its Prospects

MARKET SIZE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
CONSUMPTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
MARKET FORECAST TO 2035

4. MOST PROMISING PRODUCTS FOR DIVERSIFICATION

Finding New Products to Diversify Your Business

TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
BEST-SELLING PRODUCTS
MOST CONSUMED PRODUCTS
MOST TRADED PRODUCTS
MOST PROFITABLE PRODUCTS FOR EXPORT

5. MOST PROMISING SUPPLYING COUNTRIES

Choosing the Best Countries to Establish Your Sustainable Supply Chain

TOP COUNTRIES TO SOURCE YOUR PRODUCT
TOP PRODUCING COUNTRIES
TOP EXPORTING COUNTRIES
LOW-COST EXPORTING COUNTRIES

6. MOST PROMISING OVERSEAS MARKETS

Choosing the Best Countries to Boost Your Export

TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
TOP CONSUMING MARKETS
UNSATURATED MARKETS
TOP IMPORTING MARKETS
MOST PROFITABLE MARKETS

7. PRODUCTION

The Latest Trends and Insights into The Industry

PRODUCTION VOLUME AND VALUE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
PRODUCTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

8. IMPORTS

The Largest Import Supplying Countries

IMPORTS: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
IMPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
IMPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

9. EXPORTS

The Largest Destinations for Exports

EXPORTS: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
EXPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
EXPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

10. PROFILES OF MAJOR PRODUCERS

The Largest Producers on The Market and Their Profiles

11. COUNTRY PROFILES

The Largest Markets And Their Profiles

This Chapter is Available Only for the Professional Edition
PRO

11.1

United States