Prediction: Meta Platforms Stock Will Drop After Earnings, and That Could Be an Incredible Buying Opportunity
Meta could disappoint some investors with its outlook, but long-term investors should pay attention.
Overview
Meta Platforms (NASDAQ: META) is expected to deliver its third-quarter report at the end of the month, and that event could lead to a big drop in the stock. Shares have fallen by 7.95% or more in the trading sessions immediately following three of Meta's last four earnings releases. Those declines have largely been credited to the market's response to Meta's increasing capital expenditures, which have weighed on free cash flow and earnings. Meanwhile, however, its revenue continues to climb quarter after quarter.
That pattern could continue with Meta's next earnings report, and the company's outlook for both capital expenditures and revenue could play a role. That's all due to the success of Meta's newest product: Muse.
Image source: The Motley Fool.
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Originally published at www.fool.com.