META Faces Investor Pressure: Reddit Bagholder Frustration Meets AI Spending Headwinds

The daily discussion thread for November 13, 2025, reveals significant retail investor frustration with META:

• Bagholder Sentiment
  : Multiple users (Blackleaf400, thetalentedmrbowser, ImthatRootuser) identified themselves as META bagholders expressing frustration over recent losses [1]
• Growth Concerns
  : User Roxorek projected 2026 net income showing META at $78B, significantly trailing peers like NVDA ($139B), GOOGL ($135B), AAPL ($126B), and MSFT ($125B) [1]
• Market Context
  : Despite META’s struggles, some users remain bullish on broader markets, with mikeytho1 forecasting SPY 700 EOY despite macro concerns [1]

META faces substantial headwinds following Q3 2025 earnings and increased AI spending commitments:

• Price Decline
  : Stock trading down 2.9% on November 12-13, 2025, having fallen from 52-week high of $796.25 to current levels around $608-615 [2][3]
• Insider Selling
  : COO Javier Olivan sold $326k in META stock on November 10, 2025, at $631/share [4]
• Earnings Impact
  : Q3 2025 showed strong revenue growth ($51.24B, +26% YoY) but missed EPS expectations due to a $15.93B one-time tax charge [5]
• AI Spending Surge
  : Capital expenditure guidance increased to $70-72B for 2025, with projections exceeding $100B for 2026 [6]
• Underperformance
  : META has gained only 4.6% YTD versus S&P 500’s 16.41% return [7]
• Credibility Issues
  : Michael Burry accused META of ‘common fraud’ and inflated earnings [8]
• Infrastructure Investment
  : Company announced $1.5B investment in Texas AI data center, operational by 2028 [9]

The Reddit sentiment aligns closely with fundamental concerns identified in research. The community’s frustration as “bagholders” reflects the stock’s significant decline from its 52-week high and underperformance relative to the broader market. The 2026 net income projection of $78B versus tech peers’ much higher figures suggests retail investors are pricing in concerns about META’s growth trajectory, particularly given the massive AI infrastructure spending commitments.

The insider selling by COO Javier Olivan, though relatively small at $326k, adds to negative sentiment during a period of stock weakness. The combination of high capex requirements, tax-related earnings miss, and criticism from prominent investors like Michael Burry creates a challenging narrative for retail investors.

• Continued AI spending pressure on margins through 2026
• Further insider selling could signal lack of confidence
• Regulatory scrutiny from fraud allegations
• Underperformance relative to tech peers may accelerate

• Current levels around $608-615 represent a ~23% decline from 52-week highs
• Strong 26% YoY revenue growth demonstrates core business resilience
• AI infrastructure investments could position META for long-term competitive advantage
• Tax charge was one-time, potentially setting up for future earnings beats