Meta Burned Through $31 Billion in Cash: Is Meta Stock a Buy After Earnings?

Meta shares dropped after the company posted second quarter results that beat on revenue but showed free cash flow nearly disappearing, and that combination has a lot of people asking whether Meta stock is a buy or sell right now. Revenue came in ahead of expectations, but the gap between a strong top line and a thin cash position is exactly what makes this Meta earnings report worth a closer look. Meta spent more on AI infrastructure than almost anyone predicted, and the stock price felt it right away.

Also Read: MSFT Stock Jumped 9% After Earnings Despite Top Bank Target Cut

Meta Stock Price, Earnings Report, AI Spending And Cash Flow

Meta Stock Price Falls On Earnings Report Miss

Earnings per share landed at $6.18. That missed the $7.22 analysts polled by LSEG were expecting, a fairly wide gap for a company this size. Revenue reached $60.80 billion against a forecast of $60.17 billion, so the top line actually beat estimates. Guidance for the current quarter came in soft, somewhere between $61 billion and $64 billion. That works out to $62.5 billion at the midpoint, below the $63.15 billion Wall Street had modeled going in. Daily active people hit 3.6 billion, just a touch under the 3.61 billion estimate. The Meta earnings report also showed net income sliding to $15.85 billion from $18.34 billion a year earlier. Shares dropped as much as 7.45% right after the report.

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