Why did meta stock jump about 10% today?

Meta stock rose after the company beat Q4 expectations and guided Q1 revenue above forecasts. The market read this as resilient ad demand and improving monetisation across key apps. Investors looked past higher AI spending because the outlook showed momentum. Stronger visibility on near-term growth outweighed concerns about 2026 capex in the first reaction to the report.

What is Meta’s AI capex guidance and why does it matter?

Management guided 2026 AI capex to $115-$135 billion, nearly double 2025. Spending targets data centres, custom silicon, and training capacity for large models. It matters because it may compress free cash flow near term, but could lift ad efficiency, product innovation, and monetisation later. The debate is timing. If revenue follow-through arrives by 2026-2027, the investment can support higher long-term value.

Is meta stock expensive after the move?

On our figures, the trailing price to earnings is about 28.9 and price to sales near 8.9, backed by around 21.9% revenue growth and a near 30.9% net margin. That is not cheap, but it is supported by faster EPS growth and strong returns. Upside depends on AI execution and ad demand. If capex pays off, multiples can hold or expand. If not, they may compress.

How should UK investors approach meta stock now?

Use a multi-year view. Consider phased buys to manage volatility and size positions so a single quarter does not dominate portfolio risk. Be mindful of USD exposure and potential FX swings versus sterling. Track three things each quarter: revenue growth, capex pace, and free cash flow. If AI gains show in monetisation and margins, adding on dips can make sense.

Global Market Insights

META Stock Today: January 29 +10% on Q4 Beat, $115-$135B AI Capex

ByHuzaifa Zahoor January 29, 2026January 29, 2026

Meta stock surged about 10% after Q4 results topped estimates and Q1 revenue guidance beat forecasts. Shares of META rallied as management outlined 2026 AI capex of $115-$135 billion, almost double 2025. This scale aims to secure model training capacity and data centre leadership. For UK investors, the message is clear. Strong near-term trends meet heavy investment. We break down the drivers, the cash flow trade-off, the meta share price setup, and what it could mean for portfolios in Britain.