Key Highlights

● Meta closed at $648.85 on October 22, its worst session since July.

● Third-quarter free cash flow was negative $2.12 billion.

● Revenue hit a record $64.6 billion, ahead of about $63.3 billion expected.

● Future commitments rose to about $825 billion from about $700 billion in July.

Meta Platforms (NASDAQ:META) shares tumbled on Thursday, October 22, 2026, closing at $648.85 in their worst session since July, after the social media giant reported negative free cash flow for the first time in more than a decade. The figure rattled the Nasdaq-100 and set the tone for a punishing day in AI-linked stocks.

The number that mattered

Meta's third-quarter free cash flow came in at negative $2.12 billion. It was Meta's first cash outflow in more than a decade. Capital expenditures outstripped operating cash flow of $32.79 billion, something that had not happened since 2012, according to reports.

For years, Meta's money machine of advertising across Facebook, Instagram and WhatsApp produced so much cash that it could fund huge investments and still return billions to shareholders. A negative reading suggested that, at least for now, the AI build-out is costing more than the core business brings in.

The spending outlook reinforced that impression. Meta narrowed its 2026 capital spending range to $135 billion to $145 billion, lifting the low end from $130 billion, including principal payments on finance leases. Future lease and contract commitments rose to about $825 billion from about $700 billion in July, according to market data.

Strong revenue, sharp reaction

The rest of the report was robust. Revenue hit a record $64.6 billion, ahead of consensus of about $63.3 billion, and fourth-quarter revenue guidance of $73 billion to $76 billion topped expectations. The quarter included a legal charge of about $10 billion tied to a settlement, according to reports.

Shares initially rose after hours on Wednesday, then reversed. By midday Thursday, Meta had lost about $108 billion in market value. The cost of insuring Meta's debt against default hit a record, according to market data.

Chief executive Mark Zuckerberg said in the results release: "Our investments are paying off, the core business is strong, and we're seeing velocity across the board." Meta's chief financial officer said, "We don't have any specific financing plans to announce at this time."

Many analysts stayed constructive. JPMorgan raised its price target to $940 from $920, BofA to $845 from $810 and DA Davidson to $800 from $700. A UBS analyst wrote, "In our view, Meta is entering a capex harvest cycle."

How it spread

The free cash flow figure fed a broader fear: that the AI boom may be straining even the deepest-pocketed companies. Nvidia (NASDAQ:NVDA)'s chief executive's remark that "the demand of the capital is much greater than the availability of the capital," amplified that concern. Lam Research (NASDAQ:LRCX)'s cautious guidance added to it.

The Nasdaq Composite fell 694.00 points to 26,008.86, its steepest drop since June 5, ending a seven-session winning streak. The Nasdaq-100 lost about $1.32 trillion in market value. The S&P 500 slid 93.74 points to 7,663.43, its worst day since July.

Meta's Cash Flow Becomes the Hyperscaler Benchmark

Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) report on October 28, alongside the Federal Reserve's decision, and Amazon (NASDAQ:AMZN) follows on October 29. Their spending plans and cash flow will show whether Meta's negative quarter is an outlier or a sign of things to come. Meta's own budget for next year remains a work in progress, with the chief financial officer saying the company is "quite early in developing our budget and capacity plans for next year."