Meta's stock drops on disappointing guidance, dwindling free cash flow

Skip NavigationMarketsPre-MarketsU.S. MarketsEurope MarketsChina MarketsAsia MarketsWorld MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePoliticsWhite HousePolicyDefenseCongressExpanding OpportunityEurope PoliticsChina PoliticsAsia PoliticsWorld PoliticsVideoLatest VideoFull EpisodesLivestreamTop VideoLive AudioEurope TVAsia TVCNBC PodcastsCEO InterviewsDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() TechMeta's stock drops on disappointing guidance, dwindling free cash flowPublished Wed, Jul 29 202612:00 PM EDTUpdated 2 Hours AgoJonathan Vanian@in/jonathan-vanian-b704432/WATCH LIVEKey PointsMeta shares dropped after the company reported second-quarter earnings that missed on earnings per share.The company's revenue forecast also came in light. Meta narrowed its guidance for capital expenditures, keeping the top end of the range. In this articleMETAFollow your favorite stocksCREATE FREE ACCOUNTMeta CEO Mark Zuckerberg makes a keynote speech at the Meta Connect annual event, at the company's headquarters in Menlo Park, California, Sept. 25, 2024.Manuel Orbegozo | ReutersMeta shares slid in extended trading on Wednesday after the company issued a weaker-than-expected revenue forecast and took a big hit to its cash pile. 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 billionMeta 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."Daily active people, or DAP, came in at 3.6 billion, trailing Wall Street estimates of 3.61 billion, according to StreetAccount. DAP measures the number of users of Meta's family of apps.For capital expenditures, Meta narrowed its guidance for the year to between $130 billion and $145 billion from a prior range of $125 billion to $145 billion. With Meta pouring money into artificial intelligence infrastructure, Meta's free cash flow dwindled to $784 million in the