PomegraMeta Stock Falls 1.6% Ahead of Q3 Earnings Report
Why is Meta stock down today?
Meta (META) stock fell 1.6% to $693.94 on Tuesday, its fifth straight drop, as investors waited for Wednesday's earnings with AI spending near $140B in focus.
Key numbers
| Q3 revenue expected | $63.3B+23.6% YoY expected |
|---|---|
| Q3 EPS expected (adjusted) | $6.58per [1]; other estimates differ |
| 2026 capex outlook | $130B–$145BQ2 capex was $31.08B |
| Meta's Q3 revenue forecast | $61B–$64BStreet sits near the top end |
| Legal settlement charge | ~$10Bpart of up-to-$18B state deal |
| Meta share price (Oct 20) | $693.94-1.63%, fifth straight drop |
What happened
Meta (META) stock fell 1.6% to $693.94 on Tuesday, its fifth straight drop, as investors waited for Wednesday's earnings with AI spending near $140B in focus. Analysts expect about $6.58 a share in adjusted profit (EPS) on $63.3B in sales, roughly 24% above a year ago, when results come out after the market closes. Some profit-per-share estimates are far lower, near $3.56, because Meta will record a roughly $10B charge for settling state youth social media claims. Meta's own sales forecast was $61B to $64B.
Why it matters
Meta's report will show whether its huge AI spending is paying off through better-performing ads. Meta has said it will spend $130B to $145B this year on equipment such as data centers, and in the second quarter that spending used up about 98% of the cash its business produced. Investors want proof that AI-driven ad growth is fast enough to justify that bill, and the answer can move other big tech stocks too.
Who this affects
- MarketmixedMedium impact
- AI-linked tech stocks may swing on Meta's spending outlook.
- CompanymixedHigh impact
- Shareholders weigh strong ad growth against heavy spending, legal costs.
- CompetitorsneutralMedium impact
- Alphabet, Amazon and Microsoft face the same AI spending scrutiny.
- IndustrybullishMedium impact
- Data-center and chip suppliers gain if Meta spends more.
Meta vs Alphabet, Amazon, Snap
How we got here
Meta reports Q2 sales of $60.8B, up 28%, and sets 2026 capex outlook of $130B–$145B.
Meta agrees to settle state youth social media claims for up to $18B.
Meta shares close at $693.94, down 1.63% for a fifth straight session.
Meta due to report Q3 results after the market closes.
What to watch
- Whether Meta raises, narrows or holds its $130B–$145B 2026 capex outlook.2026-10-21
- Ad growth and AI ad tools such as Advantage+, reported at a $75B yearly pace.2026-10-21
- Fourth-quarter sales forecast versus Wall Street's roughly $73.6B estimate.2026-10-21
Educational content only. Not investment advice.
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