Meta Stock Plummets 9% as Free Cash Flow Dips 91%

Meta Platforms stock fell about 9% after the company's free cash flow dropped significantly. Its cash generation was nearly gone in the last quarter. Here's the thing: Meta produced over $31 billion in operating cash flow but spent almost all of it on capital expenditure. This left only $784 million in free cash flow, a 91% decrease from a year ago. What's interesting is that while advertising revenue beat estimates, investors are still looking for clear information on how much revenue Meta's new generative AI products are actually generating. Analysts like JPMorgan's Doug Anmuth noted that not much new was learned about Meta's AI monetization plans. The bottom line: Investors are reacting to the substantial drop in free cash flow and a lack of clear AI revenue, which could impact future growth and shareholder value.