META Q3: Earnings Beat But Capex Alarm Bells
META beat Q3 earnings estimates but erased after-hours gains after the CFO warned of 'significant investment' raising serving costs. META is now in negative free cash flow territory with a massive Q4 capex obligation.
What we know
An account on X broke that META erased most after-hours gains after the CFO's capex warning. The company spent $34.9B in Q3 capex and would need $59.2B in Q4 to hit the upper end of its annual guidance. META has joined Amazon in negative free cash flow. Additionally, as META transitions to its 'MUSE' agentic ad model, ad impression growth is sliding, raising questions about its ability to maintain elevated ad prices. Another account on X contrasted TSLA (down after earnings run-up) with META (flat into earnings, +2% after). Separately, another account on X reported Zuckerberg is considering leaving California if Prop 40's billionaire tax passes.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.