META Tumbles on Earnings Miss as Reddit Debates AI Capex vs. Value Opportunity

Meta Platforms (META) reported Q2 earnings that missed on EPS but beat revenue, triggering a sharp after-hours selloff. Reddit conversation exploded with over 1,100 comments, as value investors in r/ValueInvesting argued the high capex is necessary for future dominance, while news of a potential $10B AI compute lease to Anthropic added context to the spending debate.

Meta missed Q2 EPS estimates ($6.18 vs. $7.22 expected) but beat revenue, sending shares down over 7% in after-hours trading.
Reddit value investors in r/ValueInvesting are loading up on the dip, viewing the high AI capex as a necessary investment for Meta's long-term moat.
News broke that Meta is in early talks to lease $10 billion of AI compute to Anthropic, a potential new cloud revenue stream that could justify its massive spending.

Earnings Miss Sends META Tumbling

$META reported second-quarter earnings after the bell on Wednesday that missed analyst expectations on earnings per share, despite topping revenue estimates. The company posted EPS of $6.18 against a consensus of $7.22, while revenue came in at $60.8 billion versus the $60.17 billion expected. Meta also issued lighter-than-expected revenue guidance for the current quarter, projecting $61–$64 billion against a $63.15 billion consensus. Shares fell more than 7% in after-hours trading, extending a nine-session losing streak.