Meta Platforms experienced a significant loss in market capitalization — in March 2026, the company lost about $310 billion, which was a market reaction to lawsuits and large investments in artificial intelligence.
This is reported by Finway
- The value of Meta’s shares dropped by 18% in a month.
- Investors are concerned about the risks associated with lawsuits and rising AI costs.
- Despite the pessimism in the market, analysts advise buying Meta shares.
Reasons for the Decline in Meta’s Shares
Throughout March 2026, Meta’s shares decreased by approximately 18%, marking the company’s worst monthly performance since October 2022. At that time, the decline was linked to investments in the metaverse, while now investors are worried about the costs associated with developing artificial intelligence and legal risks.
Key factors contributing to the negative trend included extensive lawsuits. Specifically, a court in New Mexico found Meta guilty of misleading teenagers about the safety of using social media. Additionally, the company is involved in lawsuits related to social media addiction among youth.
These events have led to discussions about the potential increase in regulatory pressure on similar platforms in the U.S. Some experts believe such assessments are exaggerated; however, the mere fact of the discussion has created additional pressure on the company’s shares.
AI Costs and Analyst Predictions
Another cause for investor concern is the record investments in artificial intelligence. Despite projected revenue growth of 25% for Meta in 2026, analysts expect a sharp decline in free cash flow: from $46 billion to less than $8 billion. At the same time, the company’s capital expenditures are likely to reach $123.5 billion and will continue to grow in the coming years.
“Investors fear that large investments will not yield quick returns, as was previously the case with metaverse projects. This heightens doubts about the sustainability of the company’s current strategy.”
Despite these risks, most analysts remain optimistic about Meta’s future. According to Bloomberg, 72 out of 80 leading financial experts recommend buying the company’s shares, and the average forecast anticipates a 61% increase in their value over the next year.
It is worth noting that Meta’s CEO Mark Zuckerberg recently presented a personal AI agent that assists him in managing the company and making strategic decisions.