From Startup Fortune · · 1m 10s
Meta and IBM Earnings Fall as Oil Prices Spike
Meta and IBM beat earnings but stocks fell as oil prices hit $111 a barrel.
In brief
Meta and IBM beat earnings but stocks fell as oil prices hit $111 a barrel. Meta and IBM reported strong earnings but investors sold off due to aggressive spending and rising oil prices. Originally reported by Startup Fortune.
Meta Reports Strong Earnings
Meta Platforms reported third-quarter revenue of $64.6 billion, up 26% from a year earlier.
IBM Beats Earnings Estimates
IBM reported adjusted EPS of $2.65, beating the $2.45 consensus estimate.
Meta's Capital Expenditures Surge
Meta's capital expenditures reached $34.9 billion, pushing free cash flow to negative $2.1 billion.
Investors Sell Meta Despite Strong Earnings
The stock fell nearly 7% the next day after Meta's earnings report.
Oil Prices Spike to $111 a Barrel
Brent crude jumped to a five-month high near $111 a barrel on October 22.
AI Spending Concerns Intensify
Investors questioned whether Meta's aggressive spending would turn into actual returns.
Market Reaction to Oil Spike
The Nasdaq Composite dropped 2.6% and the Philadelphia Semiconductor Index fell 6.7% on October 22.
The bottom line
Meta and IBM reported strong earnings but investors sold off due to aggressive spending and rising oil prices.
