Meta Shares Drop 10% Despite Strong Q1 Revenue

Meta shares fell 10.3% to around $600 on Wednesday, the stock's steepest single-day drop in six months, even after the company posted stronger-than-expected Q1 revenue of $56.3 billion. The selloff signals that investors are growing impatient with the pace and payoff of Meta's AI spending push. The concern is straightforward: Meta is pouring money into AI infrastructure, but there is no clear near-term revenue line tied to that spending. When costs rise faster than confidence in returns, markets reprice the stock down, regardless of the headline beat. Adding pressure was a separate worry about declining user engagement, which matters because Meta's core business runs on advertising dollars that depend directly on how much time people spend on its platforms. Watch for Meta's next earnings call for any update on AI monetization timelines or changes to capital expenditure guidance. Either could move the stock sharply in either direction.