Meta Plunges 10% After-Hours on Q2 Profit Drop, Weak Guidance
META is trading near its 52-week low of $520.26 (4.2% above the low).
Summary
Meta's Q2 profit fell 14% to $15.85B, missing EPS estimates by a wide margin ($6.18 vs. $7.19 consensus), as expenses surged 55% on legal charges and severance. Revenue beat at $60.8B, but Q3 guidance midpoint of $62.5B came in below the $63.14B Street view. The company raised its full-year expense outlook to $165B-$169B and narrowed capex to $130B-$145B, signaling continued heavy AI investment. Free cash flow collapsed to just $784M from $8.55B a year ago, raising liquidity concerns. Shares fell up to 10% after hours, adding to an 11% year-to-date decline. This follows a string of negative headlines including layoffs, regulatory probes, and a failed acquisition, compounding pressure on the stock.
At the time of this announcement, META was trading at $542.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $520.26 to $796.25. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: CNBC TV18.