Meta lost 20 million users last quarter
Despite losing 20 million users, Meta plans $10B more in AI spending.
Meta’s latest earnings call revealed a surprising drop in user engagement: the company’s total Family daily active people (the combined user base of Facebook, Instagram, WhatsApp, and Messenger) declined by 20 million in the last quarter. Meta attributes this to internet disruptions in Iran and ongoing restrictions on WhatsApp in Russia. However, critics note that bundling all platforms together makes it impossible to tell which service is actually losing users, potentially masking a steeper decline on a flagship platform like Facebook.
Despite the user loss, Meta is doubling down on AI infrastructure. The company raised its 2026 capital expenditure forecast to $125–145 billion—$10 billion more than previous estimates—citing higher component pricing and additional data center capacity. CFO Susan Li admitted Meta had “underestimated our compute demand in the past.” Revenue grew 33% year-over-year to $56.3 billion, but Reality Labs (AR/VR) continued bleeding, posting a $4.03 billion operating loss. Meta’s stock dropped over 7% after the call, reflecting investor concern over rising costs amid a shrinking user base.
- Meta lost 20 million daily active users across its family of apps in Q1 2026, citing disruptions in Iran and Russia.
- Meta increased its 2026 capex forecast to $125–145 billion, $10B more than prior estimates, driven by AI compute demand.
- Revenue jumped 33% to $56.3B but Reality Labs lost $4.03B; stock fell 7% after earnings.
Why It Matters
Rising AI costs and declining users signal a risky bet for Meta’s future growth.