Unchained · Friday, July 31, 2026
Meta's stock fell 10% following its earnings call, attributed to an increase in capital expenditure (capex) and a Q3 revenue forecast slightly below the midpoint. The company provided qualitative explanations but lacked clear proof of revenue growth or a timeline for return on investment.
“So maybe just expand on that a little bit, please.”
“Yeah, so I listened to both the calls last night. And, you know, at what what put Face, uh, Meta, sorry, in the penalty box was, hey, we raised our capex spend. They didn't raise it by a lot. They raised the lower end by five by $5 billion, which seems like monopoly money to us, right? But they raised it. They gave, and they talked a lot. They gave us a lot of qualitative explanation. But I really, I didn't see any proof, um, in terms of revenue growth or maybe no clarification on the timeliness of, of discernible ROI.”
“That's why the stock's down 10%. So they raised their capex guy. And Q3 revenue guide was a little below the midpoint. I know these are nitpicky things, but this is what the street reacts.”