META Stock Today, March 26: Hundreds Cut as AI Capex Hits Records

Meta layoffs are back as the company trims several hundred roles across sales, recruiting and Reality Labs while plotting record 2026 AI capex of up to $135 billion. Shares of META face pressure as investors balance near-term cost relief with execution risk in AI chips, data centers and wearables. For Singapore investors, this mix of belt-tightening and bold spending matters. It affects digital ad reach, product timelines and portfolio exposure to U.S. mega-cap tech. Here is what the cuts and capex say about growth, margins and the stock setup today.

What Meta is Cutting and Why

The meta layoffs cut several hundred jobs across sales, recruiting and Reality Labs, extending a push for efficiency after earlier streamlining. Management is reallocating people and budgets from lower-priority hardware to AI-first products. Reports highlight targeted reductions and tighter spending, with Reality Labs most affected. The company framed this as sharpening focus rather than a broad freeze, according to The Straits Times.

Following meta layoffs, resources are moving from VR-heavy bets to AI features and lightweight wearables that boost messaging, search and shopping in Facebook, Instagram and WhatsApp. The strategy seeks fast, wide adoption inside the Family of Apps, then layers premium devices on top. That lowers reliance on niche headsets while aiming for stronger engagement and monetization where Meta already has scale.

Record AI Capex and Budget Priorities

Management signaled record 2026 AI capex that could reach $135 billion, focused on data centers, custom silicon, network upgrades and inference capacity. Expect heavier spend on training clusters early, then a tilt toward inference at scale as models ship. TTM metrics show capex at about 34.7% of revenue, underscoring the buildout’s weight on cash flow before efficiency gains appear.

In the wake of meta layoffs, operating expense growth should moderate, while AI spend lifts depreciation and capital intensity. Meta’s operating margin is about 41%, with R&D near 28.5% of revenue, giving room to invest. The trade-off is near-term free cash flow pressure and execution risk if roadmaps slip. Leadership focus on delivery is noted by The New York Times.

META Stock Setup: Valuation and Technicals

For META stock after meta layoffs, valuation still assumes steady growth. Shares trade near 25.3 times TTM EPS, with a PEG around 7.1. Return on equity is roughly 30.6%, free cash flow yield near 3.1% and dividend yield about 0.35%. A 2.6 current ratio and 58.8x interest coverage support flexibility for capex and buybacks.

Technicals lean cautious. RSI at 35.4 sits near oversold, MACD is negative and price is below the 50-day and 200-day averages of $650 and $691. The Bollinger lower band near $583 suggests potential support, while ATR of 17 reflects elevated swings. Money Flow Index at 27 shows weak inflows. Position sizing is key until momentum firms.

What Singapore Investors Should Watch

For Singapore portfolios, meta layoffs have limited direct impact but influence sentiment and product rollout. Many investors hold META via U.S. brokerages or S&P 500 ETFs, adding USD exposure and overnight gap risk. Regional advertisers here rely on Meta’s apps. Track any AI-driven changes to campaign tools, measurement and pricing that could shift SME ad performance.

Circle April 29, 2026 for earnings. Watch AI capex cadence versus the $135 billion plan, custom chip progress, data center timelines and clearer Reality Labs spending. Monitor ad demand, margin trajectory, buybacks and guidance quality. Street stance is constructive with 53 Buys and 4 Holds. Execution on AI hardware and inference at scale remains the swing factor.

Final Thoughts

Meta layoffs point to tighter execution as the company rebalances from metaverse-heavy bets toward AI models, chips and wearables. The 2026 capex plan of up to $135 billion is bold and front-loaded, which can weigh on free cash flow before benefits show. For Singapore investors, we think the key is balancing quality metrics with timing risk. Valuation near 25 times earnings is not stretched for a profit leader, yet momentum is weak and volatility is elevated. Our take: keep META on a tiered watchlist. Add or build positions only if execution milestones hold, margins stay firm and technicals stabilize above key moving averages. Near term, track April 29 earnings, capex pacing, and any Reality Labs updates tied to AI devices and assistants.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.