Meta Drops 7% After $34.9 Billion Q3 Capex Tops Cash Flow
Updated
Updated · Yahoo Finance · Oct 26
Meta Drops 7% After $34.9 Billion Q3 Capex Tops Cash Flow
3 articles · Updated · Yahoo Finance · Oct 26
Summary
Meta shares slid 7% on Oct. 22 after third-quarter capital spending reached $34.9 billion, exceeding operating cash flow despite a revenue beat.
Sales rose 26%, but investors focused on whether AI outlays are translating into durable growth rather than simply consuming cash.
Meta also unveiled a new nonvoting Class C share class, and Scotiabank said management signaled an equity raise may be needed.
Microsoft and Alphabet report Wednesday, followed by Amazon and Intel on Thursday, putting four AI-heavy spenders that make up about 15% of the Nasdaq 100 under the same scrutiny.
Drew Matus of MetLife said markets are punishing both capex increases and cuts, underscoring broader unease over AI-driven concentration in profits, spending and equity gains.