Meta's Stock Falls Below $600 as Investors Focus on Capital Spending Amid Upcoming Earnings Report
Meta Platforms (META) closed at $595.19, trading below its previous peak and with a price-to-earnings ratio of about 22 times earnings—lower than the S&P 500's multiple. The company is set to report second-quarter results on July 29 after raising its capital expenditure forecast for 2026 to $125 billion–$145 billion, with first-quarter spending already reaching $19.84 billion. While Meta’s advertising business continues strong—first-quarter revenue rose 33% year-over-year and ad metrics improved—the market is concerned about the rising capital outlays and their potential impact on returns. Meta generated $12.39 billion in free cash flow during Q1, ending with $81.18 billion in cash reserves. The company’s full-year spending outlook remains unchanged at $162–$169 billion, suggesting the increased capital costs are being absorbed by its balance sheet rather than directly affecting income statements for now. Investors will be watching whether Meta raises its capex range again and how Q2 revenue performs against guidance of $58–$61 billion.
Tickers: $META
Topics: advertising revenue capital expenditures free cash flow Meta Platforms