Meta Platforms' shares surged, rising 8% after hours, even as the company signaled higher-than-expected capital expenditures for 2026. Investors focused on strong revenue guidance for the upcoming quarter, overshadowing concerns about increased spending. This positive outlook, coupled with a Q4 2025 earnings beat, fueled the stock's upward movement, defying analysts' predictions.

For the full year 2026, Meta forecasts capex between $115 billion and $135 billion, and total expenses between $162 billion and $169 billion. This is above previous Street estimates. The social media giant is investing heavily in its AI infrastructure, including data centers. Concerns exist that Meta is shifting towards an asset-heavy model, but positive revenue projections are taking precedence right now.

Meta's Q4 2025 earnings showed a profit of $8.88 per share on $59.89 billion in revenue, exceeding expectations. Strong business performance in 2025 is expected to continue into 2026. The company's investments in AI are key to its future, as it aims to advance personal superintelligence. Overall, the market seems confident in Meta’s strategic direction.

Looking ahead, investors will be watching how Meta's elevated spending translates into revenue growth and profitability. The company has been aggressively investing in AI to support its core business, so the success of these initiatives will be critical. The market reaction indicates confidence in CEO Mark Zuckerberg’s vision, despite the higher capex.