Meta Platforms Stock Crashes 9% After Earnings Beat on AI Capex Surge, FCF Crunch

Meta Platforms Inc shares plunged nearly 9% to around $671 after Q1 earnings beat estimates with $56.3B revenue (vs. $55.5B expected) and $10.44 EPS (vs. $6.65), as $19B AI capex from $32.2B operating cash slashed FCF to $13.2B, raising ~35x price-to-FCF concerns. The stock had rallied ~30% from $576 since early April amid AI data centers, Broadcom chips, 8,000 layoffs, and buys from Ackman (2.67M shares) and Laffont. Institutions like Wedgewood and Polen see value at 21x FY26 multiples despite raised 2026 capex to $125-145B.