Meta Stock Just Got Hammered, But the Bull Case Is Getting Harder to Ignore

Meta Platforms (META) stock got hammered after the social media giant missed Wall Street’s earnings expectations for the second quarter. The problem wasn’t revenue, as Meta delivered record sales of $60.8 billion, up 28% year-over-year (YOY) and slightly ahead of estimates. The problem was profitability.

Earnings per share fell 13% YOY to $6.18, while total costs and expenses jumped 55% to $42 billion. Two major charges — $2.4 billion tied to legal proceedings and $1.18 billion in severance costs — played a major role in the earnings miss.