Mark Zuckerberg at G8 in Deauville, France
COM & O
- Meta Platforms, Inc. just released its second quarter earnings.
- It guided for a big increase in capital expenditures (CAPEX) on its last earnings call.
- Actual CAPEX was a little below what the full-year guidance predicted.
- Because of the modest CAPEX and higher than expected FCF, the stock rallied after hours.
- I had hoped to buy Meta Platforms at a cheap price following a big CAPEX jump, but after hours trading did not provide the entry price I’d hoped for.
Meta Platforms, Inc. (NASDAQ:META) just released its second quarter earnings. The results easily surpassed analyst expectations. Revenue came in at $39 billion, up 22%, while earnings per share (“EPS”) came in at $5.16, up 7.3%. Analysts were expecting $38.3 billion in revenue and $4.78 in earnings per share (“EPS”). The results evidently wowed investors, as the stock rallied 5.5% after they came out.
If investors were positively surprised by META’s Q2 results, they could be forgiven for having felt that way. The company’s revisions grade is a mediocre ‘B,’ and it has a major headwind in the form of rising AI CAPEX. So, investors were justified in expecting less. In fact, management told them to expect less.
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