MENLO PARK, California, September 3, 2026, 02:30 PDT — Meta Platforms (META.O) stock advanced 2.5% after markets on Wednesday, even as the company’s 55% cost increase challenges its artificial intelligence rebound.
- Meta shares were at $598.98 as of 05:25 EDT, marking a 1.03% increase from Wednesday’s closing price.
- The stock rose 2.47% to $592.85, outperforming the S&P 500 by 2.01 percentage points.
- Revenue for the second quarter increased by 28%, while expenses climbed 55%, resulting in an operating margin decrease to 31%.
Shares of Meta Platforms, Inc. NASDAQ:META were at $598.98 in premarket trading on Thursday at 05:25 EDT, up 1.03% from the previous day’s closing price of $592.85. The stock previously rose 2.47% in Wednesday’s regular trading (Yahoo Finance).
The move saw Meta advance 2.01 percentage points beyond the S&P 500, bringing its shares near Wednesday’s intraday high of $600.38. The $600 level now stands as a key measure of investor confidence in AI-fueled earnings.
The investor focus is specific. Meta is priced at 18.3 times forward earnings, which reflects expectations of a rebound in profit conversion. However, the company’s current level of spending has yet to deliver equivalent free cash flow Investing.com.
Meta premarket price
$598.98 · +1.03% vs closeAs of . Selected one-minute quotes; zero-volume indicative prints may occur premarket. Source: Yahoo Finance.
Revenue for the second quarter was $60.80 billion, an increase of 28% over the previous year. Operating income dropped 8% to $18.78 billion, while net income slipped 14% to $15.85 billion Meta results.
Chief Executive Mark Zuckerberg stated, “AI is accelerating our core business today.” The advertising division reflects this, with ad impressions climbing 14% and the average price per ad up 12%.
Expenses reveal a tougher picture. Costs surged 55% to $42.03 billion, with the total including $2.40 billion in legal fees and $1.18 billion in severance payments.
Q2 growth-to-cash conversion
Quarter ended June 30, 2026. The ratio divides reported free cash flow by capital expenditures. Source: Meta Platforms.
Most of the operating cash flow went to capital spending. Meta reported capital expenditures of $31.08 billion from $31.86 billion in cash generated by operations. The resulting free cash flow stood at $784 million.
Management projects 2026 capital expenditures at $130 billion to $145 billion, after the lower end was increased by $5 billion in July. Total expenses for the year are anticipated to be $165 billion to $169 billion.
Scale continues to provide leverage. Daily active users across the company’s family of apps rose to 3.60 billion, an increase of 3%. However, engagement growth lags behind the gains seen in ad impression volumes and pricing.
Analysts maintain a positive outlook. According to Benzinga, out of 36 analysts, 30 have issued bullish ratings while six have assigned holds. The average price target is $777, representing a 29.7% premium to the most recent price Benzinga.
Analyst stance and recent targets
Ratings and targets available September 3, 2026. Source: Benzinga analyst tracker.
Price targets vary widely. Wedbush’s $595 estimate is close to the early session figure on Thursday. Rosenblatt has set an $886 target, implying a 48% increase from that point.
The environment on Wednesday offered support, though not to the extent of Meta’s surge. The S&P 500 added 0.46%, and the Nasdaq Composite was up 0.45%. Trading volume in the U.S. reached 14.75 billion shares, falling short of the 20-day average Reuters.
Meta forecasts third-quarter revenue between $61 billion and $64 billion. The company is scheduled to release its next results on October 28. Investors want to see revenue expansion outpace costs.
Risks are still clustered. Significant AI spending may postpone cash conversion. Ongoing youth-related legal cases, regulations, and softer advertising demand might also weigh on the multiple.
The rebound has revived momentum, though not confirmed it. A decisive move past $600 would reinforce the trend. Ongoing margin improvement would justify the valuation.
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