See the full story in the original article.
Read the original on Yahoo Finance ↗
Keywords
METAcurrenciescapital expenditure
Open a keyword to see other news on the same topic.
Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/23/2026 | 642.62 |
| Change that session | -0.96% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Meta Stock Has Dropped the Day After 3 Straight Earnings Reports. Is It a Buy Now?
Meta shares fell about 7% after the third-quarter report on October 22, about 9% after April 30 and about 8% after July 30, while rising about 10% after the fourth-quarter report in January. The author argues the sell-offs were tied more to spending than to earnings: 2026 capital expenditure guidance was raised to $125–145 billion, free cash flow fell to $784 million in the second quarter from $8.5 billion a year earlier and turned negative at minus $2.1 billion in October, while operating cash flow stayed near $32 billion each quarter. Third-quarter revenue rose 26% year over year, and the average price per ad climbed 14%. The stock trades near $649, about 17% below its September 24 close of about $778, and is down about 3% for 2026. The author says they would consider buying gradually, while noting that another drop after the next report would not be surprising, and that Meta will appeal the $25 billion New Mexico civil penalty.
- Meta Just Burned Cash for the First Time Since Its IPO
Meta posted negative free cash flow of $2.12 billion in Q3 as capex of $34.91 billion, including finance-lease principal, exceeded its $32.79 billion in operating cash, the first negative quarter since 2012. Revenue rose 26% to $64.60 billion, above expectations of about $63.3 billion, but operating margin fell to 20% from 40% due to a $9.89 billion charge tied to an agreement with 52 state attorneys general over teen mental health. Long-term debt rose to $80.92 billion from $58.74 billion at the end of 2025, and Meta made no buybacks in the quarter versus $3.33 billion a year earlier. Meta narrowed its 2026 capex forecast to $135–145 billion and guided Q4 revenue to $73–76 billion, while its 2027 budget is still being developed. The article says the Q4 2026 report, expected in late January 2027, will be a key test, and a second negative free cash flow quarter or revenue below $73 billion would weaken the bullish case.
- 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.
- Meta's Free Cash Flow Turned Negative. Its New Share Class Opens Another Funding Option.
Meta unveiled a non-voting Class C stock that Class A and B holders will receive at one share per share held once the new charter takes effect January 19, 2027, raising no cash. Entities tied to Mark Zuckerberg and Priscilla Chan, holding 56.1% of the vote, approved the change by written consent, leaving Zuckerberg with about 60.6% of voting power on a 13.4% economic stake. Third-quarter capex of $34.91 billion outran $32.79 billion of operating cash flow, pushing free cash flow to negative $2.12 billion, and the full-year capex guide implies another $49 billion to $59 billion in Q4 alone. Debt has covered the gap so far, with long-term debt up $22.2 billion in nine months to $80.9 billion and no buybacks in 2026. CFO Susan Li said Meta has no specific financing plans yet but wants access to a diverse pool of funding sources, with 2027 capex guidance due on the Q4 call.
- Meta (META) Q3 2026 Earnings Call Transcript
Meta reported third-quarter revenue of $64.6 billion, up 26% year over year, with family daily active people averaging 3.64 billion. GAAP diluted EPS was $3.83 after a $9.89 billion charge tied to a multistate attorneys general agreement, while adjusted diluted EPS was $7.40. Capital expenditures reached $34.9 billion, pushing free cash flow to negative $2.1 billion, and full-year 2026 capex guidance is $135 billion to $145 billion. Muse reached 10 million users in the U.S. and Canada within six weeks of launch, with 25% using it daily. Meta also announced a nonvoting Class C stock and a 2-for-1 stock split expected to begin trading in late January 2027.
- Meta earnings live: Meta Q3 earnings to test Wall Street's stomach for AI spending
Meta (META) will kick off Big Tech's earnings season with third-quarter results after the bell on Wednesday. Bloomberg analyst consensus expects earnings per share of $3.56 on revenue of $63.3 billion, compared with $1.05 and $51.2 billion a year earlier. Capital expenditures are projected to rise 117% year over year to $41 billion, and Reality Labs is expected to post an operating loss of $5.2 billion.
Related markets
Latest news
- Want Income for Life? Philip Morris International Yields 3.2% and Has the Kind of Competitive Moat That Makes the Income Durable.
Philip Morris International yields 3.2% and has raised its dividend every year since its 2008 listing, with its latest increase at 8.8%. Its cigarette volumes held flat in the third quarter of 2026, while Altria's domestic cigarette volume fell 3.2%, and organic gross profit from combustibles rose 7.4% on pricing power. Reduced-risk products such as oral nicotine pouches, vapes and heat-not-burn devices accounted for 42% of net revenue in the first nine months of 2026. The company's cash payout ratio is about 67%, and free cash flow has trended upward despite heavy investment in Swedish Match and Zyn capacity. Analysts expect earnings to grow nearly 9% a year over the next three to five years.
- Alphabet: 3 Key Takeaways for Long-Term Investors
Alphabet reported third-quarter 2026 revenue of $127.6 billion, up 25% year over year, as demand grew for custom hardware and cloud services amid scaling AI tools. Google Cloud revenue rose 103% to $30.7 billion, with elevated demand for TPUs and 18 product lines each generating over $1 billion in annual revenue. Search query growth reached its highest rate in five years as users adopted generative AI tools, and ads are being integrated into these search interfaces. Full-year 2026 capex guidance of $195–205 billion was unchanged, with 65% of infrastructure spend going to servers and networking hardware with estimated six-year useful lives, and capex is expected to rise significantly in 2027. Management said it expects ROIC to remain meaningfully above its cost of capital throughout this investment cycle.
- AMD Has Ripped 170% This Year: Is It Too Late to Buy?
AMD stock is up 170% in 2026, driven by two record data center quarters and a Meta deal for up to 6 gigawatts of Instinct GPUs. Second-quarter revenue rose 50% to $11.5 billion, data center sales more than doubled to $6.7 billion, and AMD guided to about $13 billion for the third quarter. Analysts expect normalized EPS to rise from $7.61 this year to $15.85 in 2027, while the forward P/E has fallen from a 67x peak to 50x. The author sees the main risk as AMD helping fund some of its own demand through a lease guarantee, up to $5 billion pledged to Anthropic, and warrants of up to 160 million shares apiece for OpenAI and Meta. The author judges AMD isn't too late to buy, with the Nov. 3 report as the key test.
- Crocs Lifts Outlook as Growth Shifts Overseas: Rapid Earnings Reaction
Crocs raised its full-year outlook for a third consecutive time as quarterly revenue rose 4.6% to $1.04 billion, helped by overseas growth and a return to growth at HEYDUDE. Adjusted operating income grew 11.7%, and adjusted gross margin rose to 60.3% from 58.5%. A one-time $64 million tariff refund was excluded from adjusted earnings, while adjusted diluted EPS grew 26.4% to $3.69, helped by a diluted share count down about 11%. Crocs brand revenue rose 4.4% to $873 million, with international up 11.8% and North America down 2.1%; HEYDUDE revenue rose 6.1% to $170 million. Management now expects full-year revenue growth of about 3%, up from 1% to 2%.
- Palo Alto Soars 14% in a Week as CEO Warns of AI’s “Nuclear Sort of Bomb”
Palo Alto Networks (PANW) stock rose 14% over the past week while the S&P 500 was roughly flat, as AI helped uncover software flaws and an Evercore survey showed security budgets firming. The broader cybersecurity group rallied too, with CrowdStrike (CRWD) up 11%. The author argues the valuation is already full: the forward P/E reached 96x on Oct. 27 versus a five-year average of 57x, and the stock closed Oct. 28 just under the $399 average analyst target. The main risk cited is that major AI players, such as Amazon with AWS Continuum, may sell defensive tools themselves. The author says the fiscal first-quarter report, which will test next-generation security ARR, is the key event, and rates the stock as a hold for now.
- Why FTAI Aviation Stock Popped on Thursday
FTAI Aviation (FTAI) shares rose 14.61% after the aircraft leasing company reported third-quarter results, with revenue of $977.7 million, up 46.6% year over year, and profit of $150.6 million, up 28%. EPS rose 30% to $1.43, a pleasant surprise for investors who had sold the stock this year, though the shares are still down 10% over the past year. FTAI doubled its buyback authorization to $1 billion, which could retire more than 6% of shares outstanding if fully executed. The author is skeptical, noting the company had about $386 million on its balance sheet against more than $3.45 billion of long-term debt and burned nearly $516 million in negative free cash flow in the first half, per S&P Global, so buybacks would likely require more borrowing.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.