Meta Platforms raised its 2026 capital expenditure guidance to between $130 billion and $145 billion. This investment builds the AI infrastructure necessary to compete with Amazon AWS, Microsoft Azure, and Google Cloud.
The company recently launched Muse, a consumer AI agent designed to monetize its global user base. Goldman Sachs reiterated a Buy rating for the stock following the launch. Analysts set a $725 price target, viewing the strategy as a long-term revenue engine beyond advertising.
Aggressive infrastructure spending caused Q2 free cash flow to decline sharply. Additionally, the company faces increased regulatory scrutiny regarding its smart-glasses partnership.