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Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/21/2026 | 698.43 |
| Change that session | +0.60% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Investors are punishing Big Tech's biggest spenders. Meta is the latest casualty.
Meta shares fell more than 7% on Thursday, wiping out about $125 billion in market value and erasing the stock's gain for the year. It was on track for its third straight drop of 5% or more the day after earnings, a first since its 2012 IPO. Revenue rose 26% to $64.6 billion, but Meta raised its full-year expense outlook, narrowed capital spending to $135–145 billion, and unveiled nonvoting shares it can sell to raise money. Analyst Gil Luria of D.A. Davidson said Zuckerberg will need to raise both debt and equity, while the cost of insuring Meta's debt climbed to its highest in months. Luria also said Meta is gaining share from Google and its ad sales are growing strongly; the stock has traded roughly between $500 and $800 since mid-2024, and a weekly close above $800 would signal a breakout while a close below $500 would open the door to a deeper slide.
- Why Meta (META) shares are getting obliterated today
Meta Platforms (META) shares fell 5.7% in the morning session after pre-market gains reversed, as surging AI spending outweighed third-quarter revenue that grew 26% to $64.60 billion and better-than-expected fourth-quarter sales guidance. A regulatory filing showed roughly $825 billion in future commitments for AI data centers, energy and computing capacity, up from nearly $700 billion previously. Third-quarter capex reached $34.91 billion, pushing free cash flow to negative $2.12 billion, and Meta raised its 2026 capex guidance to $135–145 billion. GAAP EPS of $3.83 missed the $5.46 expectation, partly due to a $9.89 billion youth-litigation charge; excluding it, EPS would have been $7.40. Meta also announced a non-voting Class C share class to fund long-term infrastructure, adding to dilution concerns.
- Meta stock sinks 6% as AI spend pushes free cash flow negative
Meta shares fell roughly 6% Thursday after third-quarter results showed negative free cash flow of $2.12 billion, and the company now expects full-year capex of $135 billion to $145 billion. The spread on its five-year credit default swaps hit an all-time high, signaling growing investor credit concerns as Meta leans further into AI spending. Revenue rose 26% from a year earlier to $64.60 billion, above the $63.37 billion analysts expected, while EPS of $3.83 is unclear to compare with the $5.75 Wall Street was looking for. Meta also plans to create a nonvoting Class C stock to preserve its founder-led structure and help finance growth.
- Meta Beat Expectations in the Last Quarter. Its Stock is Plunging Anyway.
Meta's third-quarter revenue rose 26% to $64.60 billion, beating the $63.34 billion analysts expected, but the stock was down 6.33% at 11:17 a.m. ET after an early after-hours jump. Reported EPS of $3.83 reflected a $9.89 billion charge tied to an agreement with state attorneys general over teen mental health; excluding it, EPS was $7.40. Meta plans nonvoting Class C shares from January 2027 to raise AI funding while preserving Mark Zuckerberg's voting control, and now expects capex of $135–145 billion this year. Free cash flow turned negative at $2.12 billion, versus positive $10.63 billion a year earlier.
- Meta Stock Falls Despite Strong Q3 Results As AI Spending Takes Focus
- Meta's AI build-out comes with an $825 billion price tag
Meta Platforms (META) announced plans for a 2-for-1 stock split to help fund its AI capital expenditure. Shares slid in pre-market trading on Thursday after the company reported third-quarter earnings the previous day. The 8:30 hosts examined Meta's commitments of $825 billion for its AI infrastructure build-out.
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- Meta Creates Non-Voting Stock to Fund AI Buildout, Keeping Zuckerberg in Control
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Meta's board approved non-voting Class C stock on 19/10, and from 19/1/2027 Class A and Class B holders will each receive one Class C share per share held, in effect a 2-for-1 split. Zuckerberg holds about 60.6% of the vote on a 13.4% economic interest, and the structure lets Meta sell equity without diluting his voting power. According to the SEC filing, advisers at Moelis told the board Meta could raise about $700 billion over several years before his voting power fell below 50%, while CFO Susan Li called the “hundreds of billions” figure “a theoretical maximum” and said Meta has nothing to announce on equity financing. The size and timing of any equity sale have not been disclosed.
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