Meta's stock dropped almost 10% after the company issued a weaker-than-expected revenue forecast and narrowed its full-year capital expenditure range, according to CNBC.
Key facts
- Meta's stock fell nearly 10%, according to CNBC.
- The company issued a weaker-than-expected revenue forecast.
- Meta narrowed its capital expenditure range for the year.
- CNBC also cited dwindling free cash flow at the company.
Meta’s stock dropped nearly 10% after the company delivered guidance that fell short of market expectations, according to CNBC. The decline followed the release of the company’s latest earnings report on July 29, 2026.
At the center of the sell-off was a weaker-than-expected revenue forecast, CNBC reported. The outlook appears to have unsettled investors who had been watching the company’s growth trajectory closely.
In addition to the softer revenue guidance, Meta narrowed its capital expenditure range for the year, according to CNBC. Capital expenditure, or capex, refers to the money a company spends on physical assets and infrastructure.
CNBC also pointed to dwindling free cash flow as a factor weighing on the stock. Free cash flow is the cash a company has left after covering its operating costs and capital investments.
The combination of a light revenue outlook and concerns over cash flow drove the near-double-digit percentage decline in Meta’s shares, CNBC reported. The reaction underscores how sensitive investors remain to forward-looking guidance from major technology firms.
Beyond the figures cited by CNBC, further specifics of Meta’s earnings report were not detailed in the available sources.
Why it matters
Meta is one of the world's largest technology companies, and sharp moves in its stock can ripple across the broader market and investor sentiment toward the tech sector. A weaker revenue outlook and questions over cash flow signal how closely markets scrutinize the spending and growth plans of major players.
Frequently asked questions
How much did Meta's stock fall?
According to CNBC, Meta's stock dropped nearly 10%.
Why did Meta's stock drop?
CNBC reported the decline followed a weaker-than-expected revenue forecast, a narrowed capital expenditure range for the year, and dwindling free cash flow.
What does narrowing the capex range mean?
Capital expenditure, or capex, is money a company spends on physical assets and infrastructure. CNBC reported Meta narrowed its capex range for the year, though the specific figures were not detailed in the available sources.