Meta Stock Is Down Nearly 10% in 2026. Should You Buy Before July 29 Q2 Earnings?

2 months ago 31

Thomas Richmond

Sat, July 25, 2026 astatine 11:35 AM CDT 3 min read

Quick Read

META's 10% year-to-date selloff has created a uncommon introduction into a 22x-P/E compounder generating $43 cardinal successful yearly escaped currency flow.
Alphabet's cheaper 17x P/E masks near-zero gross maturation past 4th versus Meta's 33%, portion Snap operates astatine a antagonistic operating margin.
Meta has beaten EPS estimates for 6 consecutive quarters, and prediction markets delegate an 87% probability of different bushed connected July 29.
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Meta (NASDAQ:META) heads into its July 29 net report with its banal falling portion the underlying concern continues to accelerate. Shares person declined 7.87% implicit the past week and 9.68% twelvemonth to day to $595.19.

P/E Ratio 22, Gross Margin 82%, Operating Margin 41.44%, and Analyst Ratings: 57 Buy, 6 Hold, 0 Sell. The inheritance is simply a blurred bureau country with a metropolis skyline.

With Meta trading astatine conscionable 18x guardant earnings, the caller pullback could connection an charismatic introduction constituent up of Q2 earnings.

Meta Trades astatine 18x Earnings Despite 33% Revenue Growth

Meta trades astatine an 18x guardant P/E with an 82% gross margin, a 41.44% operating margin, and a 20.69% ROIC. Q1 gross climbed 33.08% to $56.31 billion, advertisement impressions accrued 19%, and mean terms per advertisement climbed 12%. Meanwhile, full-year 2025 escaped currency travel came successful astatine $43.59 billion, backing $26.25 cardinal successful buybacks alongside a $0.53 quarterly dividend.

Wall Street's statement terms people sits astatine $826.01, implying 38.8% upside from the stock's existent terms of $595.19. Right now, analysts assigned Meta 57 bargain ratings, 6 holds, and zero merchantability ratings. Paying nether 20x net for a concern generating 20%-plus returns connected invested capital feels charismatic connected a relative-value basis.

Meta Has Beaten Earnings 6 Quarters successful a Row

Meta has beaten EPS estimates successful six consecutive quarters, with the past miss dating each the mode backmost to Q3 of 2022. Polymarket traders delegate an 87.1% probability of different bushed connected July 29, and the full-chain put/call ratio sits astatine 0.43, with the July 31 expiry astatine conscionable 0.30. Institutional positioning is decisively agelong into the release.

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Meta Beats Alphabet connected Growth

Alphabet (NASDAQ:GOOGL) trades astatine a much costly 25x guardant P/E (vs Meta's 18x), but Alphabet's astir caller quarterly gross maturation was 24% versus Meta's 33%. There's of people much to see erstwhile comparing the 2 advertizing giants, but Meta banal is cheaper connected an net ground and is delivering higher top-line growth.

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