Meta Platforms Q2: Capex Continues To Weigh Heavily On The Stock

Meta Platforms, Inc. faces declining growth, shrinking margins, and a weakening balance sheet amid aggressive AI capex. We see no clear evidence yet of returns on META's heavy investment. Valuation at 36x TTM unlevered pretax FCF despite deteriorating fundamentals remains rich. Technically, META has not established a buyable bottom; no volume buildup or price spike confirms a reversal at current lows. We rate META at Do Nothing, preferring to await a proven low.