The market is overreacting to Meta's earnings and guidance. Here's our plan
📰 source: cnbc_investing · 💼 business
meta platforms slid more than 11% in extended trading after an earnings miss and disappointing guidance. second-quarter revenue rose 28% year over year to $60.8 billion, beating estimates, but adjusted eps fell 13.4% to $6.18, short of the $7.22 expected. the eps miss included a $2.4 billion legal charge and a $1.18 billion severance cost — one-time items that, if adjusted, would have produced a beat. the real concern is capex guidance: meta raised the low end to $130 billion from $125 billion, midpoint now $137.5 billion vs. street estimate of $134.6 billion. the stock is approaching late march lows, and the club is reiterating its buy rating but cutting the price target to $700 from $750, waiting for sellers to finish. on the call, zuckerberg noted instagram hit 2 billion daily actives, threads passed 500 million monthly actives, and whatsapp set a messaging record. meta also hinted at a potential cloud offering but sees higher margin in selling intelligence rather than raw compute.
why it matters: meta's earnings miss is driven by one-time costs, but rising capex guidance signals continued heavy ai investment that markets are punishing.
source: cnbc_investing
sentiment: +0.40 · impact: 0.80