By Karen Kwok
NEW YORK, April 30 (Reuters Breakingviews) – Shares fell 10% despite strong revenue growth and signs technology is boosting ad sales. The issue is funding: unlike Alphabet, Amazon or Microsoft, there’s no cloud arm to cushion infrastructure spending. A rapidly rising bet with an unclear, slow payoff makes investors queasy.
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CONTEXT NEWS
Meta Platforms raised its annual capital spending forecast when it reported first quarter results on April 29. The company now projects 2026 capital expenditure to be between $125 billion and $145 billion, compared with its prior forecast of $115 billion to $135 billion.
Meta reported first-quarter revenue of $56.3 billion, beating the LSEG-compiled analysts’ average estimate of $55.5 billion.
Separately, Alphabet also raised this year’s capital expenditure forecast when it reported quarterly earnings on the same date. The search giant now expects to spend between $180 billion and $190 billion, a $5 billion increase from the company’s estimate last quarter. Alphabet said it plans another significant increase in 2027.
Shares of Meta dropped 10% in early trading on April 30.
(Editing by Robert Cyran; Production by Pranav Kiran)
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