Shares of Meta Platforms (NASDAQ:META | META Price Prediction) are down 9% in early Thursday trading to $530 and change, after Meta's Q2 2026 results released Wednesday after the close failed to calm concerns about the company's ballooning
META delivered 28% YoY revenue growth in Q2 2026, driven by robust ad performance and app engagement. Despite strong top-line results, META's EPS missed by $1.22 due to a 55% YoY surge in expenses, including $1.18B in severance costs. Significant concerns arise from META's ballooning CapEx, narrowing free cash flow, and $420B in off-balance-sheet commitments.
Artificial intelligence has become a spending contest, and every technology giant believes it has no choice but to keep raising the stakes.
India has summoned executives from U.S. tech giant Meta , a senior official said on Thursday, after its Facebook platform briefly restricted a post by Prime Minister Narendra Modi last week.
Meta is rated a buy after a post-earnings sell-off, with the market overreacting to CapEx and cash flow concerns. Q2 earnings missed consensus due to high expenses—$3B stock comp, $2.4B legal, $1.2B severance—despite record $60.8B revenue and strong ad growth. CapEx is rising, compressing free cash flow to $0.8B, but R&D and infrastructure investments are seen as necessary for long-term growth.
Meta can simultaneously fuel its own AI ambitions and rent out its scarce computing capacity to bolster returns, CEO Mark Zuckerberg signaled on Wednesday. The problem is: investors aren't buying it.
In the night between July 29 and July 30, Meta Platforms (NASDAQ: META) stock followed one of the most common trends among big tech equities in 2026: it suffered a severe price plunge shortly after publishing its quarterly earnings.
The company's all-out splurge is running into higher costs, borrowing constraints and investor pushback.
While the top- and bottom-line numbers for Meta Platforms (META) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Meta said that time spent on Instagram grew by double digits year over year this quarter. Zuckerberg said that Instagram recommendations are "becoming more personalized" because of AI.
Meta Platforms (NASDAQ:META | META Price Prediction) shares tumbled in after-hours trading on Wednesday, July 29, after the social media giant delivered a rare profit miss, with the stock falling as much as roughly 10% at the low.
Meta fell and Microsoft rallied after sending very different signals on how they're monetizing their massive AI outlays.