Meta Platforms’ META shares closed at $644.23 on Dec. 12, down roughly 19.1% from the 52-week high of $796.25. META shares have returned 3.2% in the past year, underperforming the Computer & Technology sector’s 20.4% gain. High capital expenditure is expected to impact earnings in the near term.

Meta Platforms is heavily investing in AI research and infrastructure, with 2025 capital spending expected between $70-$72 billion. META, Alphabet, Amazon, and Microsoft are projected to spend $380 billion on AI development in 2025. However, regulatory challenges, competition, and macroeconomic concerns may affect short-term share price.

META’s shares have outperformed Amazon and Snap but lagged Alphabet in the past year. META, along with Alphabet and Amazon, is forecasted to capture over 50% of global ad spending this year. The integration of AI across platforms is driving user and advertiser engagement, with $60 billion in annual ad revenue from AI-powered tools.

META expects fourth-quarter 2025 total revenues of $56-59 billion, with a consensus estimate of $58.37 billion. Despite growth projections, the Zacks Consensus Estimate for 2025 earnings is down 2.7% over the past 30 days. META shares are trading at a premium compared to industry peers, indicating overvaluation.

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Read more at Nasdaq: META Down 19% From 52-Week High: What Awaits the Stock in 2026?