:max_bytes(150000):strip_icc()/GettyImages-2235586492-c5b7ba6482664b99a313dc546743522e.jpg "Meta Stock Plunges as Profits Take B Tax Hit From Trump’s ‘One Big Beautiful Bill’")
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Key Takeaways
- Meta shares tumbled in extended trading Wednesday after the tech giant posted earnings that missed analysts’ estimates, citing a one-time tax charge related to President Trump’s signature “One Big Beautiful Bill.”
- Meta also raised the lower end of its projected capital expenditures, as it works to build out its AI capacity.
A nearly $16 billion tax charge tied to President Trump’s signature “One Big Beautiful Bill” squeezed Meta’s profits in the third quarter, sending its stock reeling.
Shares of Meta Platforms (META) were down 9% in extended trading Wednesday after the tech giant posted earnings that missed analysts’ estimates by a wide margin, citing tax changes.
The Facebook, Instagram, and WhatsApp owner reported earnings per share of $1.05 for the third quarter, down 85% from a year ago and well below the $6.70 analysts called for. The company said it took a one-time hit to the tune of $15.93 billion tied to tax changes following the implementation of the “One Big Beautiful Bill” signed into law by President Trump in July.
Excluding the charge, Meta would have reported EPS of $7.25, topping analysts’ estimates. Meta’s revenue jumped 26% year-over-year to a record $51.24 billion, topping analyst projections compiled by Visible Alpha.
Meta also boosted the lower end of its capital expenditures forecast to a range of $70 billion to $72 billion, from $66 billion to $72 billion previously. That marks the third time this year the company has upped its capex guidance as it builds out its AI capacity.
Why This Is Significant
Meta’s repeated moves to boost spending have alarmed investors and raised pressure on it to show its spending on AI is paying off. Thursday’s big earnings miss and subsequent stock plunge would suggest investors aren’t pleased with the results, though the company pointed to a one-time tax charge for the hit.
Looking ahead, Meta said it expects fourth-quarter revenue in the range of $56 billion to $59 billion, ahead of the analyst consensus, and told investors it expects a “significant reduction” in its U.S. federal cash tax payments for the remainder of 2025 and beyond.
Shares of Meta were up about 28% for 2025 through Wednesday’s close.
