Meta Stock Slumps 3.83% on AI Delays as $11.67 Billion Volume Ranks Fifth in Market Activity

Market Snapshot

Meta (META) shares fell 3.83% on March 13, 2026, despite a surge in trading volume. The stock traded with a turnover of $11.67 billion, a 56.75% increase from the previous day, ranking fifth in market activity. The decline followed reports of delays in the launch of Meta’s next-generation AI model, Avocado, which underperformed internal benchmarks against competing systems from Google, OpenAI, and Anthropic. The price drop and elevated volume reflect investor concern over Meta’s ability to maintain pace in the AI race.

Key Drivers

Meta’s delayed release of Avocado and its subpar performance against rival AI models have intensified scrutiny of its AI ambitions. Internal tests revealed the model lagged behind Google’s Gemini 3.0 and Anthropic’s Claude in critical tasks like coding and reasoning, despite outperforming Meta’s previous models and Gemini 2.5. The delay, now pushed to May 2026, has raised questions about the company’s technical capabilities and strategic direction. A MetaMETA-3.83% spokesperson acknowledged the need to demonstrate a “rapid trajectory” in AI development, but the postponement underscores the challenges of competing with leaders like Google and OpenAI, which have already released advanced models this year.

The competitive landscape further amplifies Meta’s struggles. Google’s Gemini 3.0, launched in November 2025, set a high bar for performance, while OpenAI’s GPT-5 and Anthropic’s Claude Code have gained traction for their reliability and agentic capabilities. Meta’s AI division has reportedly explored licensing Gemini to temporarily power its products, a move that would signal a shift from its focus on proprietary innovation. However, such a step could undermine CEO Mark Zuckerberg’s vision of developing a “personal superintelligence” platform, which hinges on proprietary models rather than relying on competitors’ technology.

Meta’s aggressive capital expenditures, including a projected $115–$135 billion in AI-related spending for 2026, highlight its commitment to closing the gap. The company has invested heavily in hiring AI talent and acquiring startups, including a $14.3 billion stake in Scale AI to appoint its CEO as Meta’s chief AI officer. Yet, these expenditures have not yet translated into market-leading results. The Avocado delay comes amid mixed progress, including the launch of scaled-down Llama 4 variants and the Vibes video application, which, while incremental, fall short of the transformative impact investors and analysts expect.

The broader implications for Meta’s stock are clear: investors are reacting to the company’s failure to meet its own ambitious AI timelines and the growing dominance of rivals. While Meta remains a major player in AI infrastructure and smart glasses, the delay in Avocado’s release and its internal performance gaps have fueled skepticism about its ability to innovate at the frontier. The licensing discussions with Google add another layer of uncertainty, as they could be perceived as a strategic retreat from Zuckerberg’s vision. For now, Meta’s stock faces downward pressure as it navigates the high-stakes race for AI supremacy.