Meta Stock Plunges on $16B Tax Hit From Trump’s Legislation
Meta Platforms shares tumbled 9% in extended trading after reporting a massive earnings miss tied to a $15.93 billion tax charge. The company attributed the financial hit to changes stemming from former President Trump's "One Big Beautiful Bill" enacted in July.
While revenue surged 26% to a record $51.24 billion, earnings per share collapsed 85% to $1.05—far below the $6.70 analysts expected. The tax-adjusted EPS of $7.25 WOULD have beaten estimates, highlighting the legislation's immediate impact on corporate balance sheets.
Meta simultaneously raised its capital expenditure forecast to $70-$72 billion as it accelerates AI infrastructure development. The dual pressures of regulatory changes and technological arms races are reshaping tech giants' financial landscapes.
