Meta’s Q1 2026 decline reflects investor concerns over rising expenses and a jury verdict impacting its market position.
Meta Platforms (META) shares fell 13.3% in Q1 2026, closing at $603.00 on May 12, despite reporting 24% year-on-year revenue growth and 41% operating margins. The decline followed guidance for 2026 operating expenses to rise 40% year-on-year, exceeding Street expectations and raising concerns about AI spending efficiency relative to competitors.
The company’s one-month return stood at -10.46%, with a 52-week loss of 8.80%, while its market capitalization remained at $1.53 trillion. Meta also faced a jury verdict linking its design choices to user harm, adding regulatory and legal pressure. Broader ad budget uncertainty, tied to geopolitical tensions, further weighed on sentiment.
Investors are monitoring Meta’s regulatory risks and cost management as it navigates competitive and macroeconomic challenges.