How much has Meta stock fallen year-to-date?

It has fallen over 7% year-to-date.

What happened after Meta's Q1 earnings announcement?

The stock dropped 6% to 7% after the company raised its capital expenditure guidance.

Bank of America Cuts Meta Stock Outlook Amid AI Spending Concerns

Bank of America has lowered its outlook on Meta Platforms (META) as the stock declines more than 7% year-to-date. The move comes after the company defended its massive AI infrastructure spending, which has concerned investors.

July 10, 2026

2 min read

Source: TheStreet

Key Numbers

stock decline ytd

stock drop post q1

6-7%

Bank of America has lowered its outlook on Meta Platforms (META:NASDAQ) in a new report, citing ongoing concerns about the company's massive capital expenditure on AI infrastructure.

The stock has fallen more than 7% year-to-date, losing an additional 6% to 7% after the Q1 earnings call on April 29, when Meta raised its capital expenditure guidance.

Details of the Downgrade

The report did not specify a new price target but highlighted that the massive spending on AI (estimated at hundreds of billions of dollars) raises questions about return on investment.

Market Context

The downgrade comes amid pressure on big tech stocks due to rising AI infrastructure costs. Meta has consistently defended its investments, calling them essential for maintaining competitiveness.

What This Means for Investors

Investors should monitor Meta's capital expenditure trends and their impact on future earnings. Market reactions to any updates on the company's AI strategy will be key.

Frequently Asked Questions

Due to concerns over massive AI infrastructure spending and its impact on returns.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.