New York, Jan 27, 2026, 16:13 EST — After-hours
- Meta shares finished just above the flatline following a volatile session, as investors digested news of an AI data-center supply agreement and prepared for upcoming earnings.
- Options traders are gearing up for a sharp move after earnings, focusing closely on spending plans as a potential trigger.
- A court filing in New Mexico sparked new headline risk, putting Meta under renewed scrutiny over its AI chatbot policies.
Meta Platforms (META.O) shares edged up 0.1% to $672.98 on Tuesday following a deal to pay Corning (GLW.N) as much as $6 billion for fiber-optic cables destined for AI data centers. Corning CEO Wendell Weeks highlighted the move would “strengthen domestic supply chains” for advanced data centers. (Reuters)
The deal comes just a day ahead of Meta’s quarterly earnings, a moment when investors are keen to get a clearer picture of cost pressures. Capital expenditure—spending on data centers, servers, and networking equipment—is a key focus, as it can tighten free cash flow even if revenue climbs.
Meta kicks off the megacap earnings this week, with investors focused on whether ad revenue can sustain its costly AI expansion. Big Tech’s ramp-up in AI spending is expected to accelerate sharply in 2024, putting extra pressure on guidance. LSEG data referenced by Reuters projects Meta’s revenue to climb roughly 20.6% to $58.35 billion, even as profit growth slows amid heavy AI hiring. David Wagner of Aptus Capital Advisors weighed in on the AI race: “the first-mover advantage doesn’t always win the marathon.” (Reuters)
Derivatives traders are expecting Meta shares to move about 6% following Wednesday’s earnings, according to options prices — these contracts help investors hedge or bet on stock volatility. The Visible Alpha consensus referenced by Investopedia forecasts earnings per share of $8.17 and revenue totaling $58.43 billion for the quarter. (Investopedia)
On the Street, the battle lines are drawn between guidance and growth. Bank of America’s Justin Post flagged rising worries over 2026 expenses, while James Cordwell at Rothschild & Co Redburn pointed to investor jitters about what he called “Zuckerberg unleashed” on spending. TD Cowen’s John Blackledge put the spotlight on management’s 2026 capex and operating expense guidance, forecasting capex around $125 billion. (Business Insider)
Corning’s stock surged 15.7% Tuesday, outperforming both a flat Meta and a broader rally in Big Tech. Microsoft gained 2.2%, while Alphabet inched up 0.4% as investors brace for a packed week of tech earnings.
Not all the headlines focused on chips and cables. A court filing in New Mexico claimed Meta CEO Mark Zuckerberg favored a looser stance on AI chatbot companions, despite safety teams flagging worries over sexual interactions with minors. Meta spokesman Andy Stone pushed back, calling the state’s account misleading and based on selective documents. (Reuters)
The Corning deal underscores Meta’s deeper push into the infrastructure behind AI — the fiber, connections, and data centers — beyond just user-facing tools. It also adds to the growing tab of rapidly expanding that capacity.
The risk for bulls is straightforward: if Meta’s 2026 cost and capex guidance runs hotter than expected, estimates could get slammed and the stock might drop sharply. Options traders are already pricing this in, and the ongoing legal and regulatory news only adds fuel to the fire.
Meta is set to report its earnings after the market closes on Wednesday, Jan. 28, with the earnings call scheduled for 4:30 p.m. ET. Investors will be watching closely for guidance on spending and AI-driven returns, which are expected to be the key drivers. (Atmeta)
