{"id":1191042,"date":"2025-12-12T11:54:24","date_gmt":"2025-12-12T09:54:24","guid":{"rendered":"https:\/\/www.etoro.com\/?p=1191042"},"modified":"2026-03-20T19:25:45","modified_gmt":"2026-03-20T17:25:45","slug":"deep-dive-can-meta-regain-likes-in-2026","status":"publish","type":"post","link":"https:\/\/www.etoro.com\/en-us\/news-and-analysis\/market-insights\/deep-dives\/deep-dive-can-meta-regain-likes-in-2026\/","title":{"rendered":"Deep Dive: Can Meta Regain \u201cLikes\u201d in 2026?"},"content":{"rendered":"

The Daily Breakdown dives into Meta, which has underperformed the S&P 500<\/a> so far in 2025 as investors question its AI spending.<\/p>\n

Before we dive in, let\u2019s make sure you\u2019re set to receive The Daily Breakdown each morning. <\/span><\/i>To keep getting our daily insights<\/i><\/b>, all you need to do is <\/span><\/i>log in<\/span><\/i><\/a> to your eToro account.<\/span><\/i><\/p>\n

Deep Dive<\/b><\/h2>\n

Meta Platforms<\/a> is a collection of social media and communication applications, with its core Family of Apps consisting of Facebook, Instagram, Messenger, and WhatsApp. The company\u2019s Reality Labs segment develops virtual and augmented reality hardware, software, and content to support immersive experiences.<\/span><\/p>\n

At one point, shares were up roughly 36% on the year \u2014 and more than 65% above the April low \u2014 but after the recent pullback, they are now up just 11.5% in 2025. While that performance is not necessarily bad, it does trail the S&P 500\u2019s year-to-date gain of more than 17%.<\/span><\/p>\n

So what went wrong?<\/span><\/p>\n

Meta has been on a major spending spree, with capital expenditures surging as it invests heavily in AI. Other large tech firms, including Microsoft<\/a>, Amazon<\/a>, and Oracle<\/a>, are also spending aggressively, but investors have been more willing to punish Meta for its pace of investment. Arguably, that reaction is healthy, as it suggests investors are enforcing some level of fiscal discipline. Case in point: Meta shares rallied on news that the company was <\/span>reducing<\/span><\/a> its metaverse investments.<\/span><\/p>\n

\"Meta's<\/p>\n

As the chart above shows, operating profits continue to climb \u2014 a sign that the underlying business remains strong \u2014 but rising capital expenditures are weighing on Meta\u2019s substantial free cash flow.<\/span><\/p>\n

Future Growth Projections<\/b><\/h4>\n

Here\u2019s where it gets interesting. Analysts expect a slight earnings decline in 2025, but once the company moves past that year, forecasts for 2026 through 2028 call for double-digit earnings growth in the mid-teens. Revenue growth estimates are similarly robust. If Meta executes well, its valuation could move even lower as earnings improve.<\/span><\/p>\n

\u00a0According to Bloomberg, analysts project the following:<\/span><\/p>\n