New York, January 26, 2026, 16:58 ET — After-hours.
- Meta shares climbed roughly 2% in after-hours trading, building on momentum from a recent broker upgrade.
- The company is set to release its results on Wednesday, and investors will be watching closely for 2026 spending guidance to shape the response.
- Europe’s regulators stepped up scrutiny of WhatsApp Channels, as a U.S. youth-addiction trial is scheduled to begin this week.
Meta Platforms Inc shares climbed in after-hours trading Monday, last seen up $13.44, or 2.0%, to $672.36.
This matters since Meta will release its fourth-quarter results on Wednesday. Investors are focusing on the company’s comments about costs, not just ad growth. Spending guidance related to artificial intelligence has turned into the key driver for big tech valuations.
Rothschild & Co Redburn analyst James Cordwell has upgraded Meta from “Neutral” to “Buy,” boosting his price target from $740 to $900. He pointed to a “disconnect” between the stock’s current price and its long-term value. Cordwell did caution that shares might drop to the mid-$500s if rising costs weigh on 2026 earnings estimates, but maintained that the potential upside “far outweighs” the near-term risks. 1
Meta plans to report its fourth-quarter and full-year 2025 earnings after the market shutdown on Wednesday, January 28, followed by a conference call at 4:30 p.m. ET. 2
The broader market is pulling some weight too. The S&P 500 and Nasdaq notched a fourth consecutive gain Monday, with investors gearing up for a flood of mega-cap earnings and Wednesday’s Fed policy update. “Communications and technology are trading well today ahead of earnings from many large firms,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. 3
Overseas, Meta landed in the regulatory spotlight again. The European Commission officially labeled WhatsApp’s Channels feature a “very large platform” under the EU’s Digital Services Act, triggering stricter duties on tackling illegal and harmful content. Meta now has four months—until mid-May 2026—to meet these new requirements. 4
This week in Los Angeles, Meta, TikTok, and YouTube head to trial accused of worsening a youth mental health crisis. Jury selection kicks off Tuesday. Meta CEO Mark Zuckerberg is slated to testify, according to Reuters. 5
Traders are watching one key question: how large will the 2026 spend plan be, and what impact will it have on margins? Capital expenditures, or capex, represent the cash companies invest in long-term assets such as data centers and servers.
Meta’s earnings often ripple through ad-driven stocks. When spending or ad demand deviates from expectations, investors rapidly adjust valuations for peers like Alphabet, the owner of YouTube.
But the upside isn’t straightforward. Higher-than-anticipated costs, ramped-up AI spending, or growing compliance and legal challenges might overshadow stronger ad revenue, holding the stock down even if earnings come in ahead.
Meta’s earnings drop after the close Wednesday, with the 4:30 p.m. ET call to follow. Investors will zero in on 2026 expense and capex guidance, plus any new updates on regulatory and legal risks.
