Meta $META dropped 10% after earnings. Did it really deserve such a fall?

Meta released second‑quarter results that at first glance certainly didn’t look catastrophic.

📊 Key figures:

Revenue: $60.8B (+28% YoY) – slightly above market expectations.

EPS: $6.18 – below analysts’ expectations, which were approximately $7.20.

Net income: $15.85B, representing a YoY decline of about 14%.

Operating margin: 31%, compared with 43% a year ago.

Daily active users (Family of Apps): 3.6 billion, confirming that the Meta ecosystem is still growing.

Free cash flow: only $784M, whereas a year ago it exceeded $8.5B.

In my view, those last two numbers explain the market reaction more than the EPS itself.

Meta is continuing with unprecedented investments in AI infrastructure. CapEx reached roughly $31.8B in the second quarter alone, and the company also raised its full‑year CapEx estimate to $130–145B. Those are amounts we never used to see from tech companies just a few years ago.

On the other hand, we need to ask ourselves:

👉 Is it right to punish a company for aggressively investing in the future?

Advertising revenue is still growing at a very solid pace, user numbers are at a record high, and Meta generates tens of billions of dollars in operating cash flow. Profitability and free cash flow are falling in the short term, but the reason isn’t problems with the core business – it’s the huge investments in AI infrastructure.

$MU $AMZN $AAPL $AMA $AMAT $SKHY $NVDA

What do you think? Is the 10% drop after these results justified, or do you think the market overreacted?