Meta Platforms raises 2026 capital expenditure: Can META recover from recent selling?

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Meta slips 0.59% today to $645

Highlights

Meta Platforms reported third-quarter 2026 revenue of $64.6 billion, rising 26% year over year with robust demand for core platforms.
The company raised its full-year 2026 capital spending forecast to $135 to $145 billion for AI infrastructure, resulting in negative free cash flow of $2.12 billion and facing a $25 billion privacy damages order under appeal.
Shares of Meta Platforms are under strong downside pressure, trading below key moving averages with most indicators in oversold territory and a next-session range projected at $612.16 to $677.92.

Revenue growth and negative cash flow accelerate amid AI spending and legal risks

Meta Platforms reported third-quarter 2026 revenue of $64.6 billion, up 26% year over year, confirming strong operating results and demand for its core platforms, according to Fool. The company also raised its full-year 2026 capital expenditure guidance to a range of $135 to $145 billion as it continues large-scale investment in artificial intelligence infrastructure, intensifying short-term cash requirements but potentially enhancing future competitiveness. At the same time, Meta recorded negative free cash flow of $2.12 billion during the quarter, the first such occurrence since 2012, reflecting higher AI-related spending and increased funding needs as noted by Gurufocus. Additionally, a New Mexico judge ordered Meta to pay $25 billion in damages over privacy violations, with the company contesting the ruling and planning to appeal, as reported by Inkl.

Downside signals intensify as major moving averages and momentum falter

Technically, META is trading below its MA-20 at $681.91 and MA-50 at $705.99, signaling overhead supply, but continues to trade above the MA-200 at $632.54. The Ichimoku Kijun sits at $676.46, acting as immediate resistance. Momentum signals are negative: both MACD and ADX remain on Sell, and momentum oscillators show oversold conditions, with RSI at 27.7, Stoch RSI, and CCI also confirming oversold levels. Intraday action is dominated by sellers per Bull/Bear Power, while the Awesome Oscillator is neutral and does not reinforce the prevailing trend.

Bearish bias prevails as range holds despite high downside risk

In the coming sessions, price action is expected to remain range-bound between $612.16 and $677.92, indicating typical volatility for the current environment. The probability of a further move lower stands at 74%, while there is only a 26% chance of a rebound. A bullish scenario would require a decisive break above $676.46 to overcome immediate resistance; otherwise, a continued slide is likely if the lower boundary of $612.16 fails to hold.

Viktoras Karapetjanc, expert at Traders Union, sees Meta Platforms demonstrating fundamental momentum as revenue growth and aggressive AI investment position the firm for the long run. He believes recent free cash outflows and a high-profile legal setback introduce some near-term risks, but core demand and strategy remain intact. Technical signals are weak and near-term volatility is likely, yet major support levels still hold. "If Meta maintains its innovation drive while navigating short-term pressures, recovery potential looks strong beyond the current range-bound phase."

Earlier, analysts noted that Meta's heavy investment in AI-powered personal agents like Muse could drive substantial future revenue, while privacy and security concerns continue to weigh on the outlook. The current trading environment, shaped by higher capital expenditures and the recent legal ruling, places heightened emphasis on support at $612.16 as a key downside risk to monitor in upcoming sessions.

Source of Data: META Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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