This Is a Troubling Trend Meta Platforms Investors Should Watch Out for in Future Quarters

By David Jagielski, CPA – Apr 6, 2026 at 2:45PM ESTKey PointsMeta's business has been growing well in recent years, as ad spend has remained strong.The company, however, has been investing heavily in artificial intelligence, and that may impact its margins.Meta Platforms (META +0.48%) is a big name in social media, with top apps such as Facebook, Messenger, Instagram, and WhatsApp all under its umbrella. Billions of people use one of its applications each and every day. With so many eyeballs on its apps, it's little wonder why the business generates so much revenue, as advertisers see its applications as an easy way to reach a wide range of users. The company has also been investing heavily in next-gen technologies such as the metaverse and artificial intelligence (AI). And while those may be intriguing growth opportunities, they can also result in significant expenditures. And in recent quarters, the company's expenses have been growing faster than revenue, which could be bad news for the social media stock. Image source: Getty Images. Meta generated just single-digit earnings growth last quarter Meta's business has been generating fairly strong, consistent growth in recent years. Its ability to often grow at rates of more than 20% has been impressive, particularly as economic conditions haven't been ideal. In its most recent quarter, which covered the last three months of 2025, Meta's revenue rose by 24% year over year, totaling $59.9 billion. But what may be a sign of trouble is that its costs and expenses rose by a much higher rate of 40%. As a result, its overall operating income increased by just 6%. Three months earlier, in the September quarter, Meta's revenue growth rate was 26%, and its costs again rose at a higher rate of 32%. The company has been known to invest and spend heavily on new tech opportunities, such as the metaverse, even if the payoff hasn't been clear. And the risk for investors is that as Meta ramps up AI spending, this trend may get worse in future quarters, leading to subpar earnings growth, which may weigh on its share price. ExpandNASDAQ: METAMeta PlatformsToday's Change(0.48%) $2.75Current Price$577.21Key Data PointsMarket Cap$1.5TDay's Range$573.56 - $582.7552wk Range$479.80 - $796.25Volume485KAvg Vol16MGross Margin82.00%Dividend Yield0.37% Should you buy Meta Platforms stock on the dip? This year, shares of Meta Platforms have fallen by around 13%, and the stock is down nearly 30% from its 52-week high of $796.25. Investor sentiment has cooled, and concerns about lawsuits pertaining to social media addiction may weigh on its value even further, as that could inevitably lead to changes in how its apps function and how effective they are for advertisers. At 24 times its trailing earnings, the stock's valuation is in line with that of the average stock on the S&P 500. However, I wouldn't buy the stock today as there are too many question marks around the business to make it worth the potential headaches. It has enjoyed a terrific rally since 2023, rising by around 380%, and a pullback may be overdue. Read NextApr 6, 2026 •By Adam SpataccoThe Pullback in Meta Could Be a Gift. Here's Whether to Take It.Apr 6, 2026 •By Keithen DruryCan Meta Stock Hit $3,727 per Share?Apr 6, 2026 •By Adria CiminoThe Great Rotation Won't Last Forever. 3 Growth Stocks to Buy Before Tech Rebounds.Apr 5, 2026 •By James Brumley3 Growth Stocks Down 43%, 28%, and 41% to Buy Right NowApr 4, 2026 •By Parkev Tatevosian, CFABest Stock to Buy: Microsoft Stock or Meta Stock?Apr 3, 2026 •By Daniel Sparks2 Top Oversold Tech Stocks to Buy Before They SoarAbout the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedMeta PlatformsNASDAQ: META$577.20(+0.48%)+$2.74*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.