Meta Stock Has Dropped the Day After 3 Straight Earnings Reports. Is It a Buy Now?

META has sold off roughly 7-9% the day after each of its last three earnings reports in 2026, even as the results themselves impressed. The culprit isn't revenue. It's spending.

Revenue grew 26%, and operating cash flow holds steady near $32 billion per quarter. But capex jumped to $34.9 billion in Q3, pushing free cash flow to -$2.1 billion. Management then raised 2026 spending guidance to $135-145 billion, which keeps the cash-burn narrative alive.

The pattern is the story: the market is rewarding growth less than it is punishing outlays. Interpretation: with capex now outrunning operating cash flow, each new guidance update becomes the main risk event, regardless of top-line beats.

Valuation offers a partial cushion. META trades at about 19x forward earnings, in line with the market average, according to the source analyst, who argues the post-earnings dip makes the stock worth considering. The same analyst cautions that further declines could follow the next earnings report if the spending trend continues.