Meta Stock Tumbles 10% After Q2 EPS Miss
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- Meta stock tumbled nearly 10% in after-hours trading after Q2 EPS missed Wall Street estimates, while revenue slightly beat expectations
- Meta's advertising revenue rose 27% to $59.36 billion, beating the $59.07 billion estimate; ad impressions grew 14% and average price per ad climbed 12%
- Meta narrowed its 2026 capex guidance to $130-145 billion (Wall Street expected ~$135.79B); Zuckerberg called selling compute to other businesses a "big opportunity"
- Zuckerberg said Meta will "get back to releasing some open source models at some point soon," after keeping Meta Superintelligence Labs "uninhibited" with closed-source development
- Alexandr Wang, Scale cofounder now heading Meta Superintelligence Labs, oversaw releases of Muse Spark (April), Muse Image, and coding-focused Muse Spark 1.1
- CFO Susan Li flagged youth-related legal challenges as a "material" risk to Meta's business on the analyst call
Why it matters: Meta's core advertising business grew 27% and topped estimates, yet investors hammered the stock 10% on $130-145 billion AI capex guidance, mirroring Alphabet and Tesla's post-earnings selloffs. Zuckerberg is now pitching compute resale to other businesses as a new revenue stream, betting Meta's infrastructure buildout pays off beyond just improving its existing apps.
