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Summary
Meta Platforms (META) closed at $648.85 on October 22, 2026, down 6.98%, after reporting third-quarter results.
Revenue rose 26% to $64.60 billion, but financial media tied the drop to Meta's capital spending outlook and its plan for non-voting Class C shares.
The Nasdaq Composite fell 2.60% as other AI-linked stocks, including Nvidia and Amazon, also declined.
Gotrade News - Meta Platforms (META) closed at $648.85 on Thursday, October 22, 2026, down $48.67 or 6.98%, in the first full session after the company reported its third-quarter results. The main Meta stock news behind the drop: revenue beat expectations, but Reuters and other financial media tied the sell-off to Meta's AI spending plans and a new class of non-voting shares.
META Trading Data
Data
Value
Closing price
$648.85
Change
-$48.67 (-6.98%)
Previous close
$697.52
Open
$676.35
Day range
$639.69 to $681.07
Volume
40.6 million shares
30-day average volume
21.2 million shares
52-week range
$520.26 to $779.82
Regular-session close on Thursday, October 22, 2026, 4:00 p.m. New York time. Stock prices: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. Volume and 30-day average volume: Nasdaq.com. Indices and the 10-year Treasury yield: Yahoo Finance daily closes for the same date.
The stock opened at $676.35, fell to an intraday low of $639.69 and finished $9.16 above that low. Volume reached 40.6 million shares, 91.35% above the 21.2 million share average for the 30 sessions from September 10 to October 21, based on Nasdaq.com historical data.
META's drop was 4.38 percentage points worse than the Nasdaq Composite, which fell 2.60% to 26,008.86, its biggest daily drop since early June according to Reuters. The S&P 500 lost 1.21% to 7,663.43, while the Dow Jones Industrial Average edged up 0.02% to 52,867.98.
Other AI-linked stocks also fell. Nvidia (NVDA) dropped 4.40% to $212.21, Amazon (AMZN) slid 4.57% to $250.38 and Microsoft (MSFT) lost 2.23% to $521.08. Investors moved into Treasuries, as reported by Reuters, and the US 10-year Treasury yield fell to 4.95% in the same session.
At the close, META stood 16.79% below its 52-week high of $779.82 and 24.72% above its 52-week low of $520.26.
Why Meta Stock Fell
According to Meta's earnings report released on October 21, third-quarter revenue rose 26% to $64.60 billion, which Reuters reported beat expectations. The company's release showed quarterly capital expenditures of $34.91 billion, and Meta now expects 2026 capital expenditures of $135 billion to $145 billion, "narrowed from our prior outlook of $130-145 billion." For 2027, it expects "to continue investing aggressively."
Meta also said its board approved a new publicly listed, non-voting Class C stock and declared a one-time dividend of one Class C share for each Class A and Class B share, with record and payment dates still to be set.
The company expects the Class A share price "to reflect the effect of a two-for-one stock split." Reuters reported that the plan for non-voting stock revived concerns about Meta's mounting capital commitments.
Benzinga, citing an October 21 regulatory filing, reported that an independent board committee warned that borrowing at the contemplated scale could damage Meta's credit ratings, and that the Class C shares would let Meta raise equity without diluting Mark Zuckerberg's voting control. Per Yahoo Finance, worries over AI spending and the cost of capital resurfaced across the market on Thursday.
META Stock Analysis: Supporting Factors and Risks
Supporting Factors
Meta guided fourth-quarter 2026 revenue to $73 billion to $76 billion, and its Family daily active people averaged 3.64 billion in September, up 3% from a year earlier, according to the company.
Meta held $82.45 billion in cash, cash equivalents and marketable securities at September 30, and investor Bill Ackman, who said his fund owns the stock, told CNBC that Meta "could finance whatever they want to do with a turn or two of financial leverage," per Benzinga.
Risks
Long-term debt rose to $80.92 billion at September 30 from $58.74 billion at the end of 2025, per Meta, while Benzinga reported the board committee's warning on credit ratings.
Third-quarter costs and expenses rose 68% to $51.61 billion, including a $9.89 billion charge tied to an August 2026 agreement with US state attorneys general over teen mental health litigation, and operating margin fell to 20% from 40%.
Reuters reported that Joe Saluzzi of Themis Trading said investors are rotating out of tech and AI stocks into safer trades such as bonds and large Dow stocks.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
