Meta's Stock Plunges 17% This Year Despite AI Push, Investors Demand Revenue Proof

According to CNBC analysis, Meta's stock has fallen more than 17% this year despite the company unveiling multiple AI initiatives this month—from lower-cost smart glasses to enterprise tools and a predicted markets app partnership with Qualcomm. Wall Street analysts say investors are no longer impressed by AI product announcements; they're focused on whether these tools will generate sufficient revenue and earnings to justify Meta's aggressive data center spending.

Meta raised its 2026 capital expenditure guidance to $125 billion to $145 billion on April 29, up $10 billion from prior guidance, citing rising memory and chip costs. Piper Sandler analyst Thomas Champion told CNBC the capex increase was a "disappointment" that overshadowed strong revenue growth. However, analysts see potential revenue streams: Meta's new AI-powered business messaging agent could tap a $75 billion market, while the company's paid Meta One subscription offering—priced at $7.99 to $19.99 monthly—could generate $5 billion to $10 billion in incremental revenue by 2028 with 2-4% penetration, according to Evercore ISI.