Meta faces scrutiny over AI capex ahead of Q4 earnings

Meta Platforms will report fourth-quarter results after the closing bell and hold an analyst call around 4:30 p.m. ET, and Wall Street is fixated on the company’s outlook for AI infrastructure spending and capital expenditures, according to Business Insider. Rothschild analyst James Cordwell gave Meta a $900 price target — about 35% above midweek levels — saying the market debate centers on FY26 operating expenses and capex.

Cordwell warned of a scenario some describe as 'Zuckerberg unleashed' and Rothschild raised its full-year capex projection for Meta to $117.1 billion. Goldman analysts said investors will listen for updates on the Meta Superintelligence Lab, timing for foundational model work and plans for consumer or enterprise AI utility.

Deutsche Bank maintained a buy rating with an $880 target and said Meta is "positioned favorably" as it doubles down on AI, while noting lingering concerns about this year’s expenses and projecting about $59 billion in revenue. Bank of America expects Meta to slightly beat estimates but stressed the importance of the company’s expense guide for 2026, saying an expense-growth guide near 30% could be positive while at or above 35% would be negative.

BofA has an $810 target and expects full-year capex of $109 billion to $114 billion, versus a Wall Street consensus near $110 billion.

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