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A weaker-than-expected revenue forecast sent META shares lower in the session, with dwindling free cash flow compounding the read. Meta also narrowed its capital expenditure range for the year.
The formal filing is the next confirmable milestone that will put both disclosures in full context. The guidance miss Meta's revenue forecast came in below what the market had priced.
That gap between the company's own outlook and consensus is what is in focus. When guidance falls short of consensus, the multiple on the forward earnings estimate tends to compress.
Attach a free cash flow problem and the compression tends to run longer. The mechanics are worth laying out. Revenue guidance sets the ceiling on what analysts can model for the coming period.
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