Meta Stock Plunges as Profits Take $16B Tax Hit From Trump's 'One Big Beautiful Bill'

Core Insights - Meta's earnings report for the third quarter revealed a significant earnings miss, primarily due to a nearly $16 billion tax charge related to the "One Big Beautiful Bill" signed by President Trump, which caused a 9% drop in its stock price during extended trading [1][2][3][5][8] - The company's earnings per share (EPS) fell to $1.05, an 85% decrease year-over-year, and well below the expected $6.70 from analysts. Without the tax charge, EPS would have been $7.25, exceeding analyst expectations [3][4] - Meta's revenue increased by 26% year-over-year, reaching a record $51.24 billion, surpassing analyst projections [4] Financial Performance - The reported EPS of $1.05 is a stark contrast to the previous year's figure and highlights the impact of the tax charge [3] - Revenue growth of 26% year-over-year indicates strong operational performance despite the tax-related setback [4] - The company has raised its capital expenditures forecast to a range of $70 billion to $72 billion, reflecting ongoing investments in AI development [4][5] Future Outlook - Meta anticipates fourth-quarter revenue between $56 billion and $59 billion, which is above analyst consensus [6] - The company expects a "significant reduction" in U.S. federal cash tax payments starting in 2025, which may improve future profitability [6]