Jim Cramer called Meta a “monster long” in an October 12 X post, and Fisher Asset Management held 6.79 million shares worth about $3.83 billion at the end of the second quarter. Ads are so far paying for the AI bet: second-quarter revenue grew 28%, ad impressions rose 14% and the average price per ad rose 12%, while Meta’s apps reach 3.60 billion people daily. Sensor Tower estimates Muse, launched in September, drew 5 million downloads in the US and Canada in 22 days, and Meta began charging for it on October 12 with plans at $20 and $100 a month, but it has not disclosed Muse revenue. The bear case rests on cash: second-quarter operating cash flow was barely larger than capital spending, free cash flow nearly disappeared to under $1 billion, and 2026 capex guidance is $130 billion to $145 billion. No 2027 outlook was given, the stock fell about 10% the next morning, and free cash flow is not expected to recover until at least fiscal 2028.
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Related tickers and likely impact
META
• NeutralMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/20/2026 | 694.44 |
| Change that session | -1.56% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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