First Fellow
2026.07.31 12:07

$Meta Platforms(META.US) Ads still growing and the best Ad business in the world. Cash flow is the problem, a big problem.

- Rev ~$60.8B (+28%)

- EPS $6.18, clear miss

- FCF ~$784M, down ~91%

- Capex raised again

- Q3 rev guide soft at the low end

Why I think it dropped? Same AI spend story as $Microsoft(MSFT.US), opposite scorecard. Market can’t see when that spend turns into a real line item. Margin and cash got hit, so the multiple got hit with it.

What to expect? Show me stock now. Cheap on paper doesn’t matter until FCF stops freefalling or they prove AI monetization. Bounces are for swings or shorts. The real rerating needs a cleaner cash story next quarter. Until then, pain!

Chart courtesy: @EconomyApp

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