Meta’s stock drops 7% on earnings miss, light revenue guidance
u/Puginator ·
Reddit — r/stocks
· July 29, 2026 at 20:10
· ⬆ 160 pts
· 💬 66 comments
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Summary
The post reports Meta’s 7% stock drop after Q2 earnings missed EPS ($6.18 vs. $7.22) but beat revenue ($60.80B vs. $60.17B), with light Q3 guidance ($62.5B midpoint vs. $63.15B consensus).
No explicit investor thesis from the author; the post is a straightforward news summary with a link to CNBC.
Quality assessment: News recap, not DD – speculative/opinion-based content dominates the comments section.
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Meta shares dropped over 7% on Wednesday after the company reported second-quarter earnings that missed on earnings per share.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
* **Earnings per share**: $6.18 vs. $7.22
* **Revenue**: $60.80 billion vs. $60.17 billion
Meta said it expects revenue this quarter of between $61 billion and $64 billion, or $62.5 billion at the middle of the range. Analysts were expecting guidance of $63.15 billion, according to LSEG. The company said that the guidance “assumes foreign currency is an approximately 1% headwind to year-over-year total revenue growth, based on current exchange rates.”
On the earnings call, investors will be listening closely to what Meta CEO Mark Zuckerberg has to say about the company’s efforts to more directly monetize its various AI-related efforts. Earlier this month, Meta debuted the Muse Spark 1.1 model, which AI chief Alexandr Wang said represents the “strongest model for agentic and coding work yet” and at a cheaper price than offerings from OpenAI and Anthropic.
Source: [https://www.cnbc.com/2026/07/29/meta-q2-earnings-report-2026.html](https://www.cnbc.com/2026/07/29/meta-q2-earnings-report-2026.html)
Revenue beat estimates, and the EPS miss was relatively small ($6.18 vs $7.22) – the sell-off may be overdone given the market’s focus on AI monetization and upcoming product releases. The 7% dip creates a short-term entry point for investors who believe Meta’s AI spending (e.g., Muse Spark 1.1) will eventually drive ad revenue and new growth, while the core ad business remains strong. A contrarian buy on the dip, supported by revenue beat and low expectations; the stock may recover as sentiment shifts toward AI opportunities. Continued high capex on AI/metaverse without clear ROI, further guidance cuts, or macroeconomic headwinds pressuring ad spending.