Meta shares are down 10% after a strong report. The worst day in six months may await them

Meta securities fell in trading on April 30 by more than 10% - investors are analyzing the company's results for the first three months of 2026. In them, among other things, Meta reported plans to increase spending on artificial intelligence, CNBC notes.

April 30, the channel points out, could be the worst day for Meta shares since October 2025. At the same time, the securities of Alphabet, which also reported the day before for the quarter after the close of trading and also raised its capital expenditure forecast - on the contrary, are growing by 5%. For them, this could be the best day since November 2025, CNBC writes.

Concerns about Meta's AI spending prompted analysts at JPMorgan to downgrade the company's stock from "market outperform" to "neutral." In an April 30 note, the analysts said that Meta has a "challenging road ahead" to capitalize on projected significant capital expenditures. "Overall, we expect greater clarity on Meta's plans to achieve ROI on its AI investments outside of [the company's] core advertising business and believe that creating, refining, scaling and monetizing new products and services will take time," JPMorgan said (quoted by CNBC).

"The market has been less unanimous in its assessment of [bigtechs'] spending plans," Hargreaves Lansdown analyst Matt Britzman noted in turn. "Investors are still trying to balance the scale of the AI opportunity with the amount of money needed to realize it," he added, but emphasized that the quarterly results of major U.S. companies and their forecasts suggest that "this cycle [in AI] is far from over.

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