Bulls Circle Meta Ahead of Earnings, But AI Spending Risks Remain

Yahoo Finance reports that investor sentiment toward Meta has improved ahead of its July 29 earnings report, driven by cost cuts and potential revenue from a new compute deal with Anthropic. BofA analyst Justin Post expects EPS upside from a 10% workforce reduction and a 49% drop in job postings. He also added $5 billion in 2027 revenue estimates for AI capacity benefits. Meta stock has rallied 12% in the past month, outperforming the S&P 500, though it remains down 2% year-to-date. The stock trades at a forward P/E of 20.75, below its seven-year average of 22. However, the article warns that Meta is still in heavy investment mode and could raise its 2026 capital expenditure plans on July 29, which might reverse the recent gains.