Meta Stock Is Down Nearly 10% in 2026. Should You Buy Before July 29 Q2 Earnings?

Fast Learn

• META’s 10% year-to-date selloff has created a uncommon entry right into a 22x-P/E compounder producing $43 billion in annual free money move.

• Alphabet’s cheaper 17x P/E masks near-zero income development final quarter versus Meta’s 33%, whereas Snap operates at a destructive working margin.

• Meta has overwhelmed EPS estimates for six straight quarters, and prediction markets assign an 87% chance of one other beat on July 29.

• Act now: the analyst who referred to as NVIDIA in 2010 simply named his high 10 AI shares — and Meta did not make the lower. Seize the names FREE at present.

Meta (NASDAQ:META) heads into its July 29 earnings report with its inventory falling whereas the underlying enterprise continues to speed up. Shares have declined 7.87% over the previous week and 9.68% 12 months so far to $595.19.

With Meta buying and selling at simply 18x ahead earnings, the current pullback might supply a sexy entry level forward of Q2 earnings.

Meta Trades at 18x Earnings Regardless of 33% Income Progress

Meta trades at an 18x ahead P/E with an 82% gross margin, a 41.44% working margin, and a 20.69% ROIC. Q1 income climbed 33.08% to $56.31 billion, advert impressions elevated 19%, and common worth per advert climbed 12%. In the meantime, full-year 2025 free money move got here in at $43.59 billion, funding $26.25 billion in buybacks alongside a $0.53 quarterly dividend.

Wall Avenue’s consensus worth goal sits at $826.01, implying 38.8% upside from the inventory’s present worth of $595.19. Proper now, analysts assigned Meta 57 purchase scores, 6 holds, and 0 promote scores. Paying underneath 20x earnings for a enterprise producing 20%-plus returns on invested capital feels enticing on a relative-value foundation.

Meta Has Crushed Earnings 6 Quarters in a Row

Meta has overwhelmed EPS estimates in six consecutive quarters, with the final miss courting all the way in which again to Q3 of 2022. Polymarket merchants assign an 87.1% chance of one other beat on July 29, and the full-chain put/name ratio sits at 0.43, with the July 31 expiry at simply 0.30. Institutional positioning is decisively lengthy into the discharge.

Act now: the analyst who referred to as NVIDIA in 2010 simply named his high 10 AI shares — and Meta did not make the lower. Seize the names FREE at present.

Meta Beats Alphabet on Progress

Alphabet (NASDAQ:GOOGL) trades at a costlier 25x ahead P/E (vs Meta’s 18x), however Alphabet’s most up-to-date quarterly income development was 24% versus Meta’s 33%. There’s after all extra to contemplate when evaluating the 2 promoting giants, however Meta inventory is cheaper on an earnings foundation and is delivering greater top-line development.

Can Meta Justify As much as $145 Billion in AI Spending?

The bear case is capex. Meta raised FY2026 capital spending steerage to $125 to $145 billion, sparking execution issues. Nevertheless, Meta’s Q1 working money move of $32.23 billion, curiosity protection ratio of 71.48x, and money and securities of $81.2 billion give the enterprise a cushion towards the capex spend.

CFO Susan Li confirmed the corporate retains the pliability to “carry it on-line extra slowly or scale back our spending in future years” if returns lag. If Q2 outcomes present that AI investments are strengthening advert efficiency with out eroding margins, the current pullback might show to be a compelling shopping for alternative.

Act now: the analyst who referred to as NVIDIA in 2010 simply named his high 10 AI shares — and Meta did not make the lower. Seize the names FREE at present.

Contact [email protected] for any questions or corrections.