Meta’s shares have dropped for nine straight sessions, marking the longest daily skid since the company went public. This unexpected slump has wiped out $223 billion in market value, pulling Meta’s market cap down to about $1.5 trillion and dragging its year-to-date losses close to 10%. The stock fell from an intraday high of $681.90 in July to around $593.41, a steep 12.9% decline.
Heavy AI Investments Weigh on Meta’s Valuation
At the heart of this sell-off is Meta’s aggressive push into artificial intelligence. The tech giant plans to spend a staggering $135 billion on capital expenditures this year, a figure that’s unsettling investors who are questioning whether the hefty investments will pay off soon enough. While the S&P 500 has climbed roughly 8.5% so far in 2026, Meta’s stock has struggled, underperforming the broader market by nearly 19 percentage points.
This current downturn contrasts sharply with early 2025, when Meta enjoyed a 16-day winning streak fueled by optimism around AI and strong revenue forecasts. Now, the mood has shifted dramatically as investors brace for the company’s Q2 earnings report.
Q2 Earnings in the Spotlight
Meta is set to release its Q2 earnings after the market closes on July 29, 2026. Analysts forecast revenue of about $60.29 billion, representing a solid 27% growth compared to the previous year. Despite solid top-line growth, the market is fixated on whether Meta’s massive spending on AI and infrastructure justifies its valuation amid persistent volatility.
Meta’s history holds some parallels, notably the late 2022 plunge when the stock lost over 75% amid the metaverse spending backlash. However, this current nine-day losing streak is unprecedented in its length, underscoring the high stakes investors face. Balancing rapid revenue growth against sky-high capital expenditures will be key for Meta’s outlook.
This content is for informational purposes only and is not financial advice.
