"With shares of META stock now trading around $635 per share at the time of writing (down from almost exactly $750 per share heading into this print), that's a decline of more than 15% in the span of around one week. That's a big drop in that amount of time, but even bigger for a company with a market capitalization that was pushing $2 trillion heading into the print."
"With Meta posting $7.25 in EPS compared to analyst estimates of $6.69, and revenue beating estimates by nearly $2 billion ($51.2 billion versus $49.4 billion expected), that's a big beat. And on top of that, Meta provided a forward revenue guidance range that was higher than what the consensus on Wall Street suggested would be the case. That said, what Meta CEO Mark Zuckerberg also announced during this earnings call was that he plans to ramp up capital expenditures dramatically to around $72 billion this year,"
Meta reported $7.25 in EPS versus $6.69 expected and $51.2 billion in revenue versus $49.4 billion expected, and provided forward revenue guidance above consensus. Shares fell roughly 9% on October 29 and declined about 15% over the following week, moving from near $750 to about $635 per share. CEO Mark Zuckerberg announced a planned ramp in capital expenditures to around $72 billion for the year and suggested 2026 spending could be notably larger. The large capex increase drove investor concern despite the earnings and guidance beat, creating a potential contrarian buying opportunity.
Read at 24/7 Wall St.
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