$META just reported Q2 free cash flow of $784M — down 91% year-over-year and the lowest since Q3 2022.
Why? Massive AI capex binge.
Stock dropped 10%+ after hours, now 34% off all-time highs.
This is what happens when you go all-in on infrastructure before proving the return. Markets loved the AI story on the way up. Now they're asking: when does this actually pay off?
Classic cycle: hype first, scrutiny later. Free cash flow doesn't lie — and right now, it's getting crushed by spending.
If you own it, ask yourself: do you believe in the long-term payoff, or were you just riding momentum? Because the easy part is over.
Why? Massive AI capex binge.
Stock dropped 10%+ after hours, now 34% off all-time highs.
This is what happens when you go all-in on infrastructure before proving the return. Markets loved the AI story on the way up. Now they're asking: when does this actually pay off?
Classic cycle: hype first, scrutiny later. Free cash flow doesn't lie — and right now, it's getting crushed by spending.
If you own it, ask yourself: do you believe in the long-term payoff, or were you just riding momentum? Because the easy part is over.
