Meta (META) Stock Falls Despite Strong Q1 Earnings and Advertising Growth

During the early European trading session on Thursday, the Meta Platforms (META) stock failed to stop its previous downward...

Written by: Arslan Butt • Thursday, July 9, 2026 • 2 min read

• Last updated: Thursday, July 9, 2026

Quick overview

Meta Platforms (META) stock is under pressure, trading around $603.12 with over 2% losses in the last 24 hours due to concerns over high AI spending.
Analysts warn of potential oversupply in the AI market, leading to cautious investor sentiment and further stock decline.
Despite stock struggles, Meta's advertising business is thriving, contributing to strong earnings of $56.3 billion in Q1 2026, a 33% increase from last year.
Meta is projected to surpass Google as the world's largest digital advertising company, with Q2 revenue guidance between $58 billion and $61 billion.

During the early European trading session on Thursday, the Meta Platforms (META) stock failed to stop its previous downward rally and remained under pressure around $603.12, showing more than 2 percent losses in the last 24 hours. Moreover, the main reason behind this poor performance is that the Meta company is spending a huge amount of money on its AI, because of which the market is afraid that whether this much spending will give profit in the future or not.

Looking at the overall market condition, some analysts say that there could be an oversupply of AI computers, which could harm the entire market. As a result of this, investors have become cautious, which pushed the stock lower.

Despite this, Meta’s advertising business on Facebook and Instagram is doing very well and making strong profits.

Meta Reports Strong Earnings and Sales Growth

Meta Platforms is the company that owns Facebook, Instagram, WhatsApp, and Threads. However, the company’s excellent performance is evident from its strong earnings report for the first three months of 2026 qaurter 1, which shows that the company made 56.3 billion dollars in sales, which is 33 percent higher than last year. Meanwhile, the GAAP net income was approximately 26.8 billion dollars, which is a very strong number. Profit margins were also strong, meaning the company earned a healthy profit from every dollar of sales. EPS was $10.44, which was far above expectations.

Moreover, the company largest business is selling advertisements, which run on Facebook and Instagram. These ads generate the largest share of its total revenue.

Considering all of its growth, Meta is expected to surpass Google and become the world’s largest digital advertising company this year. Moreover, the company also shared that Quarter 2 revenue guidance is $58 billion to $61 billion. For the full year, expenses are expected to be between $162 billion and $169 billion, while capital expenditures could range from $125 billion to $145 billion. All these figures show that the company’s main business is strong.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.