1 Big Reason to Sell Meta Platforms Stock Above $650

Quick Read

• META's capex astir doubled to $145B successful 1 rhythm portion escaped currency travel fell 19%, arsenic CFO Susan Li admitted the institution keeps underestimating compute needs.

• Meta's Q1 EPS of $10.44 included a $3.13-per-share taxation benefit, pushing underlying net person to $7.31 and masking existent profitability.

• The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Meta wasn't 1 of them. Get them present FREE.

Meta Platforms (NASDAQ:META) astatine $622.98 looks stretched connected immoderate rally toward $650, wherever the mathematics down its escalating AI superior measure stops moving successful shareholders' favor. The banal has spent six months stuck successful a corridor, and 1 structural interest overshadows an different beardown operating story.

Meta runs the largest advertizing web connected the unfastened internet, reaching 3.56 cardinal regular progressive radical crossed Facebook, Instagram, WhatsApp, and Messenger. Advertising drove $55.02 cardinal of Q1 2026 revenue. Shares are down 5.54% twelvemonth to day and 6.29% implicit 12 months adjacent arsenic gross accelerated to 33.1% YoY past quarter.

Why Bulls Want Every Dip

Q1 2026 produced a 5th consecutive EPS beat, with EPS of $10.44 against $6.66 statement and gross of $56.31 billion. Ad impressions roseate 19% and terms per advertisement roseate 12% simultaneously, a uncommon pricing-power combination.

Margins stay best-in-class astatine 82% gross, 41.44% operating, and 30.08% net, with ROIC of 20.69%. The guardant aggregate sits astatine 19x, inexpensive for a concern increasing apical enactment successful the low-30s. Sell-side enactment is overwhelming: 57 Buy oregon Strong Buy ratings, a statement people of $826.75, and zero Sells.

The Capex Bill Bulls Are Underwriting

FY26 capex guidance was raised to $125 to $145 billion, up from $72.22 cardinal successful 2025. That is simply a adjacent doubling successful 12 months. CFO Susan Li told analysts Meta has "continued to underestimate our compute needs adjacent arsenic we person been ramping capableness significantly." Depreciation from that buildout flows consecutive into operating income.

Free currency travel fell 19.4% successful 2025 adjacent arsenic gross roseate 22.2%, and Reality Labs mislaid $19.2 billion. Q1 EPS included an $8.03 cardinal taxation payment worthy $3.13 per share, putting underlying EPS person to $7.31. Insiders sold heavy adjacent the threshold: 9 executives disposed of a combined 39,751 shares connected a azygous time astatine $618.43, with COO Javier Olivan selling earlier astatine $680.09.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Meta wasn't 1 of them. Get them present FREE.

The Argument for Standing Still

The Family of Apps motor is working, and absorption guided 2026 operating income supra 2025. A banal astatine 22x trailing net with these returns connected superior is reasonably priced.