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Why another shocking Meta capex number may keep the stock underwater

Meta Platforms stock has declined 13% over seven consecutive days as investors anticipate the company's Q2 earnings report.

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The brief

Meta Platforms is experiencing a downward trend, with its stock slipping below $600 and falling 13% over a seven-day period. The market is currently awaiting the company's Q2 earnings report.

Coverage from Yahoo Finance, Trefis, and The Motley Fool emphasizes the stock's current valuation at approximately 22 times earnings. Meanwhile, Seeking Alpha highlights concerns regarding excess capacity, inflated cash flows, and hidden debt.

Attention is now focused on the upcoming Wednesday report, specifically regarding whether capital expenditure (capex) numbers will impact the stock's recovery.

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Quick answers

How has Meta's stock performed recently?

The stock has dropped 13% over seven consecutive days and fell below $600.

What is Meta's current valuation according to reports?

According to Yahoo Finance, the stock trades at about 22 times earnings.

What specific financial concerns are being raised?

Seeking Alpha mentions excess capacity, inflated cash flows, and hidden debt.

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