META stock is in a weak position this year as the slump has continued into 2026. In the last six months alone, the tech giant has slipped 13%, falling to a low of $620. It hit a peak of $790 in August with little to no time for recovery since then.

CNBC’s Mad Money host Jim Cramer explained the reason for META stock’s fall in a recent segment. While he highlighted the company’s robust performance, its spending structure did them in. The damage has continued in 2026, and if they don’t correct course, they could fall further.

Why Is META Stock Falling? Jim Cramer Has The Answer

Jim Cramer explained that while all tech firms are investing heavily in the AI infrastructure, META is significantly spending more. According to the latest report, the Mark Zuckerberg-led company has pledged to invest $600 billion by 2028. The firm is trying to go a step further to build a “personal superintelligence” tech. The spending is huge and is causing the META stock to dip as investors’ worries mount.

“Their stock is very down, very big, because they’re really a lone wolf when it comes to spending,” said Jim Cramer. Large spending on AI had previously affected Amazon and Microsoft, among others, and is now affecting META stock.

Also Read: Morgan Stanley: Microsoft (MSFT) to Rise On Software Spending

Here’s the Positive Side

If Mark Zuckerberg’s bet on the personal superintelligence tech pays off, present-day investors could reap big profits. The risk-to-reward ratio is high as the future of AI is still in limbo. Since META is planning to take a step ahead in AI, its stock could soar if it succeeds. An investment of around $600 to $570 could be apt to purchase when it dips.

However, investors can take an entry position in META stock only if they believe that the bet could pay off. Mark Zuckerberg previously failed in the Metaverse concept, making the company lose $70 billion. He announced the layoffs of several teams due to the failure.