After a record $85 billion sale of Google shares this week, Meta is now considering raising tens of billions of dollars in stock markets as it looks to expand its move into artificial intelligence.
The stock went from $610 to a new low for the day at $581.58. The price is currently trading at $586.56, down $41 or -6.56%. Shares are down -11.04% in 2026 after rising a modest 12.74% last year (relatively. The Nasdaq is up 20%).
Some additional points:
- Meta generates massive cash flow From Facebook, Instagram, WhatsApp, and advertising operations, it is not just relying on existing cash balances.
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The company is in the middle of a huge spending cycle on artificial intelligence Capital expenditures for 2026 are expected to reach $125-145 billion. The Google deal is just one part of the broader AI infrastructure.
As of the latest quarter (Q1 2026, ending March 31), here are the details:
- Cash and cash equivalents: $23.4 billion
- Marketable securities: $57.8 billion
- Total cash + securities: $81.18 billion
The “real” liquid war chest is that combined figure of $81 billion, where marketable securities (mostly short-term bonds and similar instruments) are almost as accessible as cash.
Some other notable numbers from Q1 2026: Meta generated $32.2 billion in operating cash flow and $12.4 billion in free cash flow in the quarter alone, and paid $1.35 billion in dividends. So, they’re generating cash very quickly even as they spend heavily — and management is now guiding 2026 capex at $125-145 billion, mostly for AI infrastructure.
Fingers crossed it works (this time)
Remember the Metaverse?
This time marks the first dive into the metaverse (remember the meta was Facebook?). By all accounts, the Metaverse was an abject failure – but with some interesting wrinkles worth knowing about.
Spending: Reality Labs, Meta’s virtual reality and augmented reality division, reported cumulative operating losses of about $83.6 billion from 2020 through 2025. Year-over-year: 2020 ($6.6 billion), 2021 ($10.2 billion), 2022 ($13.7 billion), 2023 ($16.1 billion), 2024 ($17.7 billion), and 2025 ($19.2 billion) – with losses increasing every year. In the first quarter of 2026 alone, Reality Labs lost another $4 billion while generating revenue of just $402 million.
Failure of the original vision: In October 2021, Zuckerberg renamed Facebook’s parent company to Meta and announced that the company would become a “Metaverse first.” Four and a half years later, Horizon Worlds – the pioneering social VR platform at the heart of that vision – has come to an end. Despite huge investments, Horizon Worlds has suffered from low user engagement and technical issues, and the broader VR market remains niche, with global headset shipments declining in 2024.
Axis that actually works: This is the nuance. The metaverse bet has quietly transformed into something different. Meta smart glasses have been a surprise hit, and the company appears to be increasingly focused on AI-powered wearables that blend digital experiences with the real world, rather than immersive virtual reality accessed through bulky headsets. Ray-Ban Meta sunglasses are said to have sold millions of units and are considered a true success.
Brutal summary: In 2025, Reality Labs had revenue of $2.21 billion and a loss of $19.2 billion — but Meta’s total revenue for 2025 was $200.97 billion, which is why the company was able to survive that size of loss without an existential crisis. Zuckerberg was mainly spending profits from Instagram and Facebook ads to fund his failed venture. The basic vision of people living and socializing in virtual worlds through headsets has failed. What can be salvaged are the augmented reality headset hardware, which is now being repositioned as an artificial intelligence device rather than a portal to the metaverse.
Let’s hope his AI plans and massive spending pay off.
Looking at Meta’s stock price, it’s still far from this year’s lows at $520, but it fell back below the 200 and 100 hourly moving averages today at $618 and $613.88. The price is also below the lowest levels since May around the $594 level. Staying below $600 would keep sellers in more control. Back to the top Traders will still need to clear the 50% midpoint at $605.89 and the 100 and 200 hourly moving averages near $618. In the absence of this, sellers remain more in control.
As Adam wrote earlier this week, it’s all good when you use cash to fund your AI goals. When you tap on the stock market, it increases your risk level. In other words, it is the opposite of a stock buyback.
