tech
April 29, 2026
Meta stock drops on quarterly results as 'internet disruptions' in Iran drag down user numbers
Meta beat on revenue, but showed disappointing user numbers and its capital expenditures were below estimates.
TL;DR
- Meta's shares fell approximately 7% in extended trading after the company announced lower-than-expected capital expenditures and missed user growth targets.
- Revenue for the quarter climbed 33% year-over-year to $56.31 billion, exceeding analyst estimates.
- Daily active people (DAP) increased 4% year-over-year but dropped more than 5% from the previous quarter, falling short of Wall Street's projections.
- Meta attributed user declines to 'internet disruptions in Iran' and 'a restriction on access to WhatsApp in Russia'.
- Capital expenditures were $19.84 billion, below the $27.57 billion average estimate, but the company increased its full-year capex guidance.
- Net income more than doubled to $26.8 billion, aided by a significant income tax benefit.
- The company faces potential material losses from multiple youth safety-related legal cases and has implemented significant layoffs.
- Meta debuted its first proprietary foundation model, Muse Spark, as it seeks to monetize its AI initiatives.
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