What changed
$META — Connects people through social media and virtual reality.
🎯 Q1 FY26 | Rev $56B | EPS $10.44 vs $6.66 🟢 | Margin 47.8%
💡 Consensus expects decelerating growth and margin compression from AI capex. The Q1 beat (EPS $10.44 vs $6.66 est, +57%) shows operating leverage is accelerating, not declining. Revenue grew 33% YoY, operating margin expanded to 47.8% from 51.4% a year ago (despite higher R&D and capex).
🏢 Business Quality: 9/10 | Valuation: fair
📉 Reward/Risk: Upside 20% to $700 (25x 2027 EPS of ~$28) vs downside 15% to $500 (18x 2027 EPS). Ratio 1.3:1.
🔮 Catalyst: Q2 2026 guidance raise or beat (July 2026). Metric: Revenue guidance midpoint >$60B (current range $58-61B). Failure signal: Revenue below $58B or operating margin below 45%.
💰 Entry: Current $584.59 is attractive within a $540-600 range. Ideal entry $550 on any AI capex fear pullback.
Also in play: $GOOGL $SNAP $PINS $RDDT $NVDA $AMD