#MetaEarningsBeatExpectations $META #ShareWeekly

Meta printed revenue +26% and operating income -37% in the same quarter. So which number is the stock actually trading? Here’s how I’d split it.

1. The growth ledger
Revenue was $64.6B against about $63.4B expected, and advertising grew 26% on both volume and pricing. The Q4 guide is $73B to $76B, which is +13% to +18% on Q3 (my math). Demand isn’t the problem.

2. The cost ledger
Total expenses rose 68% to $51.6B, including a $9.89B charge for settling litigation with 52 state attorneys general over teen mental health. That charge equals about 15% of the quarter’s revenue (my math). Reported operating income fell 37% to $12.99B, a 20% margin.

3. The adjusted math (my math)
Add the charge back and operating income is about $22.9B, a margin near 35%, and up 11% year over year, which matches the company’s own figure. But a year ago the margin was roughly 40%, so even excluding the charge it fell about 5 points. Revenue grew 26% and adjusted operating income only 11%, so infrastructure and AI costs are growing faster than sales. The legal charge is the headline, but the margin squeeze underneath it is the thesis.

4. Capex is the real tension
Reported Q3 capex was $34.9B (single-source), about 54% of revenue and about 1.5x adjusted operating income (my math). The 2026 range was narrowed to $135B–$145B from $130B–$145B, so the midpoint moved from $137.5B to $140B (my math), against a consensus of about $138B. The market is rewarding the ad growth, but the spending is the cost of staying in the AI race.

5. The reaction faded
Shares closed the regular session at $697.43. After hours they rose as much as 5% to about $733, but on my chart they’re at 712.20, up about 2.1%. That means the bid retained only about 41% of its peak gain (my math). A fading pop isn’t a verdict, but it says buyers weren’t unanimous.

6. Chart check (levels from my screenshot)
Price is 712.20.

35-day at 705.22: -1.0%
Support at 695.46: -2.4%
14-day at 726.49: +2.0%, 21-day at 729.87: +2.5%
Resistance at 759.68: +6.7%
RSI is 50.8, and the MACD histogram is -7.15

Price sits in the middle of the average band, so nothing is decided. The regular-session close sat almost on support, so losing 705 on a daily close would erase most of the earnings pop. Reclaiming 729.87 would be the first sign of real follow-through. To 729.87 versus support, reward/risk is about 1:1, but to 759.68 it’s about 2.8:1 (my math).

My take: I like the revenue and respect the spending, but I don’t love paying for both at once. I’d rather see price hold 705 and clear 730 than chase the gap.

Not financial advice.

Which number would you trade: revenue growth or the margin squeeze? And do you read capex at this scale as an investment or a burden?
@Gate_Square