Seeking Alpha
29 Oct 2026, 11:45 UTC · 1h ago
Meta: Strong Quarter, Bright Outlook, But What About The Dividend?
Impact · against what's priced in
Meta's strong Q3 earnings and AI-driven outlook are largely irrelevant for the stock price as the market has already discounted a deceleration to 13% revenue growth and current profitability levels. The massive increase in CapEx to $135–$145B confirms the pressure on free cash flow, reinforcing the current valuation's cautious stance on shareholder returns.
- META−0.10
Already priced in
- The price assumes
A free-cash-flow margin holding near 22.9%, sustaining current profitability.
The raise in 2026 CapEx guidance to $135–$145B (over 100% higher than last year) validates the pressure on free cash flow and minimal near-term dividend growth already reflected in the valuation.
What META's price assumes · Sep 2
Top 1 mover · tap to explore
