Meta Platforms Falls 9% on Soft Guidance as Wall Street Slashes Price Targets

Published Jul 30, 01:52 PM UTC

Meta Platforms shares fell 9% in early trading on July 30, 2026, after reporting Q2 earnings that missed EPS estimates by 13% due to a 55% surge in total costs, including legal charges and severance. Despite revenue of $60.8 billion beating expectations, the company's soft Q3 guidance and a massive $135-145 billion capex commitment for 2026 alarmed investors. Free cash flow plummeted to $784 million from $8.6 billion a year earlier. Ten major firms cut price targets, with Wells Fargo slashing from $835 to $640, citing limited visibility into AI monetization beyond advertising. In contrast, Microsoft shares jumped 15% as investors rewarded its tighter capex framing and clearer AI revenue path. The report highlights a growing divergence among hyperscalers in AI investment returns.