Meta Platforms opened July 30 with a heavy sell-off after reporting quarterly earnings that fell short of expectations. The stock plunged more than 9%, tumbling from $585.61 to $531.50 by early trading, marking one of the steepest declines among major tech stocks in 2026.
Before the earnings release, Meta's shares had already slipped 1.3%, but the post-report reaction was far more dramatic. Year-to-date, the company’s stock is down over 18%, erasing roughly $320 billion from its market value since the start of the year. Meta’s market cap fell from $1.67 trillion at the end of 2025 to about $1.35 trillion as of the pre-market session on July 30.
What triggered the sell-off
Investors focused on earnings per share (EPS), which landed at $6.18, well below the anticipated $7.22. This miss was a key factor in shaking confidence. Revenue guidance also disappointed; although the forecasted range was broad, the midpoint of $62.5 billion came in slightly under the expected $63.15 billion. Meta’s Q2 revenue beat estimates at $60.8 billion, surpassing the $60.17 billion prediction, but this did little to offset concerns.
More troubling was the sharp decline in free cash flow, dropping from $8.5 billion last year to just $784 million this quarter. Simultaneously, Meta raised its capital expenditure outlook slightly to between $130 billion and $145 billion, up from the previous range. Investors have recently punished tech giants increasing CapEx, fearing this drains cash reserves without clear returns. Despite promises of AI-driven growth, tangible financial benefits remain elusive.
Meta’s cautious revenue outlook and disappointing EPS numbers combined with rising spending plans cast a shadow over its near-term prospects, fueling the sell-off.
Meta's stock fell 9.24% to $531.50 in early trading on July 30.
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