The sole reason for today’s waterfall: Meta’s Q3 earnings report. Meta’s Q3 financial statements slightly exceeded market expectations, but now merely surpassing revenue forecasts isn’t enough—the market demands clear pathways to AI monetization and improved capital efficiency. Meanwhile, Meta’s personal assistant, Muse, remains in its early stages, burning cash to acquire users, with its primary use case still centered on online shopping. Under these conditions, Meta confirmed and raised its full-year 2026 Capex guidance floor to $135–145 billion, while financing its AI initiatives through the issuance of non-voting Class C shares. This further reinforces market concerns about “massive investments, long payback periods, and pressure on free cash flow.” $META