Meta Platforms Inc. (META) is having one of those weeks. The stock dropped again Thursday, extending its five-day losses to 9.13% as broader market weakness dragged down tech names across the board.

It's a rough reversal for a company that seemed unstoppable just days ago. The Nasdaq-100 fell 1.32% to 24,561 on Thursday, while the S&P 500 slipped 1.04% to 6,810, and Meta got pulled down with them.

When Good Earnings Go Bad

Here's the frustrating part for Meta shareholders: the company actually crushed its fourth-quarter earnings. When results dropped on January 29, shares rocketed 9.24% to $730.50 in a single day. The numbers were legitimately impressive—earnings per share hit $8.88 versus expectations of $8.16, while revenue came in at $59.89 billion against estimates of $58.29 billion.

But markets have a short memory, and that post-earnings euphoria has completely evaporated. The problem isn't what Meta earned last quarter. It's what the company plans to spend going forward.

The Spending Spree That's Spooking Investors

JP Morgan analyst Doug Anmuth maintained his Overweight rating and $825 price target in a Monday note, but he didn't sugarcoat the elephant in the room. Meta's 2026 expense guidance is what Anmuth called "significantly elevated"—we're talking $162 billion to $169 billion in expenses and another $115 billion to $135 billion in capital expenditures.

Do the math and it gets uncomfortable fast. JP Morgan projects Meta will generate just $5 billion in free cash flow for 2026. That's a razor-thin margin for a company this size, and it explains why investors are getting nervous despite the strong advertising business.

What's Next for Meta

The next earnings report lands on April 29, 2026, and expectations are climbing. Analysts are forecasting earnings per share of $6.62, up from $6.43 a year earlier, with revenue projected at $55.41 billion compared to $42.31 billion last year.

The stock trades at a P/E ratio of 28.5x, which signals a premium valuation. Investors are clearly paying up for growth, but that also means there's less room for error.

Analyst Sentiment Stays Positive

Despite the recent weakness, Wall Street analysts remain firmly in Meta's corner. The consensus rating is a Buy with an average price target of $851.66—suggesting significant upside from current levels.

Recent analyst activity shows continued confidence:

• Argus Research maintained a Buy rating with an $800 target on February 2
• DA Davidson raised its target to $850 on January 29
• Morgan Stanley lifted its Overweight target to $825 on January 29

The Scorecard Reality Check

Looking at Meta's fundamental metrics paints a mixed picture. The company scores an impressive 89.62 on quality measures, indicating a rock-solid balance sheet. But the value score comes in weak at 44.55, reflecting that premium valuation relative to peers.

Most concerning right now is the momentum score of just 17.04, which confirms what the chart already shows—Meta is clearly underperforming the broader market in the near term.

Current Trading Action

As of Thursday's session, Meta shares were trading down 0.98% at $662.44. That's a far cry from the $730 level the stock briefly touched after earnings, and it shows just how quickly sentiment can shift even when a company delivers strong results.

The question now is whether this is a temporary pullback in a high-quality growth story, or whether those massive 2026 spending plans represent a genuine threat to profitability. Analysts are betting on the former, but the market isn't quite convinced yet.