Key Highlights

● Meta shares closed at $648.85 on October 22, their weakest session since July.

● Third-quarter revenue hit a record $64.60 billion, ahead of consensus of about $63.3 billion.

● Meta narrowed 2026 capital spending to $135 billion to $145 billion, raising the low end.

● Free cash flow was negative $2.12 billion, Meta's first cash outflow in over a decade.

Meta Platforms (NASDAQ:META) sank on Thursday, October 22, 2026, closing at $648.85 as a record quarter was overshadowed by ballooning AI spending. It was the stock's worst day since July, and a midday estimate put the market value wiped out at about $108 billion. The slide helped drag the S&P 500 and the Nasdaq Composite sharply lower.

The shares had risen in after-hours trading on Wednesday, right after the report, before reversing course.

Record revenue, record spending

Meta reported third-quarter revenue of $64.60 billion, a record, ahead of consensus of about $63.3 billion. Its fourth-quarter revenue guidance of $73 billion to $76 billion was above consensus. The quarter included a legal charge of about $10 billion tied to a settlement, according to reports.

The spending side worried investors. Meta narrowed its 2026 capital spending range to $135 billion to $145 billion, raising the low end from $130 billion. Free cash flow came in at negative $2.12 billion, which marked Meta's first cash outflow in more than a decade. Spending commitments rose to about $825 billion from about $700 billion in July, according to market data, and the cost of insuring Meta's debt hit a record.

Chief Financial Officer Susan Li said, "We don't have any specific financing plans to announce at this time." She added that Meta is "quite early in developing our budget and capacity plans for next year."

A new share class

Some media reports described a two-for-one stock split. According to Meta's SEC filing, the company plans a one-time stock dividend of one non-voting Class C share for each Class A and Class B share, contingent on a charter amendment effective January 19, 2027. The Class A price is expected to reflect a two-for-one split after payment. Some market commentators saw the move as a way to help fund AI spending.

Chief Executive Mark Zuckerberg struck an upbeat tone in the release. "Our investments are paying off, the core business is strong, and we're seeing velocity across the board," he said.

Analysts stay constructive

Several analysts kept bullish views. JPMorgan kept an Overweight rating and raised its price target to $940 from $920. BofA kept Buy and lifted its target to $845 from $810. DA Davidson raised its target to $800 from $700, and Guggenheim maintained Buy. A UBS analyst wrote, "In our view, Meta is entering a capex harvest cycle."

A drag on the whole market

Meta's report rippled across AI stocks. The S&P 500 fell 93.74 points to 7,663.43, its worst day since July. The Nasdaq Composite lost 694.00 points to 26,008.86, its steepest drop since June 5, shedding about $1 trillion in market value, according to market data. Power and data-center suppliers such as GE Vernova (NYSE:GEV) and Vertiv (NYSE:VRT) slid. Guidance from Lam Research (NASDAQ:LRCX) and comments from Nvidia (NASDAQ:NVDA)'s chief executive on scarce capital added to the pressure.

Meanwhile, about two of every three S&P 500 stocks rose, according to market reports, as investors moved into staples, health care and homebuilders.

Meta's Next Milestones: Share Class and Rival Reports

The share dividend depends on a charter amendment, and the January 19, 2027 effective date is the next formal milestone. Investors will also watch for any financing plans, which Meta has said it has none to announce yet.

Fellow hyperscalers report next. Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) post results on October 28, and Amazon (NASDAQ:AMZN) reports on October 29. Their spending plans will show whether Meta's surge in capital spending is an outlier or part of a broader trend. The Federal Reserve also announces its rate decision on October 28.