Meta Q2: This Dip Is A Trap

Meta Platforms delivered 28% YoY revenue growth in Q2 2026, driven by robust ad performance and app engagement. Despite strong top-line results, META's EPS missed by $1.22 due to a 55% YoY surge in expenses, including $1.18B in severance costs. Significant concerns arise from META's ballooning CapEx, narrowing free cash flow, and $420B in off-balance-sheet commitments. I rate META as Hold, citing elevated risk, questionable capital allocation, and an expensive valuation relative to sector peers.

This tech earnings season is in full swing, as the stocks of two out of the Mag 7 companies have been moving in separate directions. While Microsoft Corporation (MSFT) managed to