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.
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Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: low
| 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.
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