Down About 29%, Is Meta Stock a Buy, Sell, or Hold?

Meta's stock has fallen 29% despite accelerating revenue growth of 33% in Q1 2026. While the ad business is thriving with strong engagement and pricing power, the company's massive capital expenditure plans—raised to $125-145 billion for 2026—pose a significant risk. The spending is largely for AI infrastructure, and returns remain unproven. At a forward P/E of 17, the stock appears reasonably valued, but the uncertain payoff from heavy AI investment warrants a cautious approach.