Meta Platforms shocked investors with plans for capital expenditures to soar in 2026, with estimates between $115 billion and $135 billion. Revenue in Q4 rose 24% year-over-year to $59.9 billion, with EPS up 11%. However, expenses grew even faster, leading to concerns about earnings growth and the impact of big spending on Meta’s cost structure.

Despite revenue growth and positive momentum, Meta’s expenses are growing at a faster rate, with forecasts for expenses to reach between $162 billion and $169 billion in 2026. The company’s big investments in AI infrastructure are expected to lead to higher depreciation costs, impacting earnings growth. Investors are questioning whether this spending will pay off in the long run.

Investors are left wondering if the significant spending by Meta Platforms will ultimately be worth it. While revenue growth shows promise, the impact on earnings-per-share growth in 2026 remains a concern. Stock Advisor did not include Meta Platforms in its list of top 10 stocks to buy, highlighting the uncertainty surrounding the company’s massive spending and future returns.

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