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Meta investors weigh cost cuts and AI spending ahead of July 29 earnings
Meta shares are up 12% over the past month, but the article warns AI capital spending could rise again at the July 29 report.
Meta investors are focusing on potential profit upside from cost cuts as the company approaches its July 29 earnings report, Yahoo Finance reports.
The piece points to actions in 2026, including a 10% workforce reduction in May and a 49% quarter over quarter drop in job postings in 2Q, which it says could translate into EPS upside.
It also cites the expectation that CEO Mark Zuckerberg could signal stronger demand for 2027, supported by a compute tie-up with Anthropic.
Yahoo Finance adds that Meta stock has rallied 12% in the past month versus a slight decline in the S&P 500, and notes shares trade at a forward P/E of 20.75, below a seven year average of 22, while cautioning that Meta’s AI capital expenditures plans for 2026 could be adjusted higher on the earnings date.
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