Meta Platforms’ Stock Drops 8% Amid $16 Billion Tax Charge Despite Strong Earnings
Meta Platforms (META) shares fell sharply by 8% following its Q3 earnings report, despite surpassing Wall Street expectations. The company posted earnings per share of $7.25, beating estimates of $6.69, and revenue of $51.24 billion, exceeding the projected $49.41 billion. The decline was attributed to a one-time, non-cash income tax charge of $15.93 billion linked to U.S. President Donald Trump’s "One Big Beautiful Bill Act."
Meta anticipates the legislation will reduce federal cash tax payments significantly through 2025 and beyond. The company forecasts Q4 revenue between $56 billion and $59 billion, with the midpoint above analyst consensus. Meanwhile, Meta raised its full-year expense guidance by $2 billion to a range of $116 billion to $118 billion.
