00:00 josh
Okay, Josh, let’s go. Well, the company reported earnings of $10.44 per share. This represents a revenue of $56.3 billion. Our forecast here was for EPS of 815. That’s well over $55.5 billion in sales. That’s the beat. A few things to note here: I think the main reason for stock prices to fall in after-hours trading is, of course, due to CapX guidance. Meta has announced again, raising its forecast for how much it expects to spend on AI this year. This is 2026 capital spending, which is currently expected to be in the range of $125 billion to $145 billion. This was an upward revision from the 115-135 forecast given to the market in January. Again, we expect an increase of $10 billion at the lower and upper end of our 2026 capex guidance. Stocks have taken a bit of a hit in this regard. Now, the overall costs are going to be and are expected to be the same and are expected to be in the $162 billion to $169 billion range. That makes a lot of sense considering Meta announced last week that it would be cutting about 10% of its staff. While the overall cost of running a business will not increase, the intensity of investment in AI will increase. You can also see that the stock price has fallen by about 6% in after-hours trading. The company also received a $1 billion, or sorry, one-time tax benefit, which increased earnings per share by $3.13. Therefore, earnings per share would be $7.31. I think this number is better than the 643 cases reported a year ago. So Me’s bottom line was up 62%, which was actually inflated by the one-time $8 billion in income tax benefits, which added an additional $3.13 per share to the number. But again, the stock price is really moving based on the CapX numbers seen at the lower and upper bounds of the 2026 forecast. Josh.
