Meta Reports Earnings Miss, Stock Drops Amid Rising Capital Expenditures
Meta (META) reported second-quarter earnings that missed analyst expectations despite beating revenue forecasts. The social media giant saw its stock drop as much as 9% following the results and a revised capital expenditure outlook for 2026. The company posted EPS of $6.18 against an expected $7.14, while advertising revenue reached $59.3 billion versus estimates of $59.07 billion. Meta raised its lower capex range to between $135 billion and $145 billion from the previous estimate of $125–$145 billion. Analysts expressed concern over rising capital expenditures and modest cash flow, calling the results 'barely passable.' The stock's sharp decline reflects investor unease about Meta’s financial trajectory despite its ongoing investment in data centers.
Tickers: $META
Topics: Capital Expenditure Earnings Report Meta Stock Price Drop