#股票财报季
Burning through $34.9 billion in a quarter. Cash flow turns negative. First time since Meta went public 🦖
Meta reported third-quarter revenue of $64.6 billion, up 26% year over year. But free cash flow turned negative, at -$2.2 billion—the first time it’s gone negative since the company went public. In the same earnings report, the low end of its capital expenditure outlook rose from $130 billion to $135 billion, with the high end at $145 billion.
👉 进群看盘面
It’s not that Meta isn’t making money—it’s that it isn’t making enough to keep up with the spending. Total costs and expenses jumped 68% year over year to $51.61 billion, while its operating margin fell from 40% to 20% 💸
There was another contrast: reported earnings per share were $3.83, below expectations, because they included $9.89 billion in legal settlement costs. Excluding that charge, EPS was $7.40, above expectations. On the same day, a New Mexico judge also ordered the company to pay a $25 billion fine.
Advertising is still holding up: impressions rose 10% year over year, and the average ad price increased 14%. Daily active people across Meta’s family of apps reached 3.64 billion. The cash cow is still producing milk; it’s just not producing it fast enough to satisfy AI’s appetite.
Meta also announced a one-for-one distribution of non-voting Class C common stock to existing shareholders—effectively a two-for-one stock split. It’s using new shares to fund AI, while securing Zuckerberg’s commitment to stay in California for the next eight years. Financing, control, and taxes—all bundled into one deal.
Tesla also reported earnings the same day. Revenue was essentially flat at $28.046 billion. Net income was $787 million, down 43% year over year. Operating income fell 56%, leaving an operating margin of just 2.6% 📉
Put the two earnings reports side by side and the takeaway is clear: this AI arms race has entered the cash-burning phase. It’s not profits they’re burning through—it’s free cash flow.
Put another way: companies are trading equity and debt for computing power. For markets, this means a drain on liquidity. As companies issue new shares and debt, it will be difficult for long-term interest rates to fall meaningfully. High-valuation risk assets, including crypto, will all face the same headwind ⚠️
But Bitcoin hasn’t fallen this week. It’s now above $83,000, up 0.59% over the past 24 hours. That suggests money isn’t leaving risk assets right now; it’s being selective, favoring assets with greater cash-flow visibility and a strong narrative 📈
The key thing to watch: if capital expenditure rises again in Q4, corporate bond issuance will grow alongside it. That’s when the real pressure on valuations will kick in.
What do you think—will this round of AI spending ultimately lift Bitcoin, or drain its liquidity? Join the discussion in the comments.
Every day, we bring you the latest stories in crypto—not just what’s happening, but the logic and opportunities behind it 👀🚀
Burning through $34.9 billion in a quarter. Cash flow turns negative. First time since Meta went public 🦖
Meta reported third-quarter revenue of $64.6 billion, up 26% year over year. But free cash flow turned negative, at -$2.2 billion—the first time it’s gone negative since the company went public. In the same earnings report, the low end of its capital expenditure outlook rose from $130 billion to $135 billion, with the high end at $145 billion.
👉 进群看盘面
It’s not that Meta isn’t making money—it’s that it isn’t making enough to keep up with the spending. Total costs and expenses jumped 68% year over year to $51.61 billion, while its operating margin fell from 40% to 20% 💸
There was another contrast: reported earnings per share were $3.83, below expectations, because they included $9.89 billion in legal settlement costs. Excluding that charge, EPS was $7.40, above expectations. On the same day, a New Mexico judge also ordered the company to pay a $25 billion fine.
Advertising is still holding up: impressions rose 10% year over year, and the average ad price increased 14%. Daily active people across Meta’s family of apps reached 3.64 billion. The cash cow is still producing milk; it’s just not producing it fast enough to satisfy AI’s appetite.
Meta also announced a one-for-one distribution of non-voting Class C common stock to existing shareholders—effectively a two-for-one stock split. It’s using new shares to fund AI, while securing Zuckerberg’s commitment to stay in California for the next eight years. Financing, control, and taxes—all bundled into one deal.
Tesla also reported earnings the same day. Revenue was essentially flat at $28.046 billion. Net income was $787 million, down 43% year over year. Operating income fell 56%, leaving an operating margin of just 2.6% 📉
Put the two earnings reports side by side and the takeaway is clear: this AI arms race has entered the cash-burning phase. It’s not profits they’re burning through—it’s free cash flow.
Put another way: companies are trading equity and debt for computing power. For markets, this means a drain on liquidity. As companies issue new shares and debt, it will be difficult for long-term interest rates to fall meaningfully. High-valuation risk assets, including crypto, will all face the same headwind ⚠️
But Bitcoin hasn’t fallen this week. It’s now above $83,000, up 0.59% over the past 24 hours. That suggests money isn’t leaving risk assets right now; it’s being selective, favoring assets with greater cash-flow visibility and a strong narrative 📈
The key thing to watch: if capital expenditure rises again in Q4, corporate bond issuance will grow alongside it. That’s when the real pressure on valuations will kick in.
What do you think—will this round of AI spending ultimately lift Bitcoin, or drain its liquidity? Join the discussion in the comments.
Every day, we bring you the latest stories in crypto—not just what’s happening, but the logic and opportunities behind it 👀🚀