Meta Grew Sales 26%. It Still Spent More Cash Than It Made

Brad Roth
October 22, 2026

TL;DR

• Meta's revenue rose 26% to $64.6 billion, but heavy data-center spending pushed free cash flow to negative $2.1 billion. The technology sector, 19.3% of the even-weight strategy, sells it the chips and software.

• Nasdaq 100 futures are down 1.80% after Asian chip stocks fell overnight. The ten-year yield dropped 11.3 basis points to 5.036%.

• Jobless claims land at 8:30. Treasury sells four- and eight-week bills at 11:30.

Market Pulse

Futures as of 7:25 AM ET, commodities as of 7:22 AM ET, yields as of 7:20 to 7:26 AM ET, currencies as of 7:16 AM ET

• S&P 500 futures are down 1.11% at 7,671.90.

• Nasdaq 100 futures are down 1.80% at 29,284.90.

• Dow futures are down 0.74% at 52,467.10.

• Russell 2000 futures are down 0.75% at 2,760.30.

Wednesday was a tech day. The S&P 500 rose 0.53%, the Nasdaq 100 1.05% and the Dow 0.64%. Seven of eleven sectors finished higher. Technology led at 1.67%, then industrials at 0.91%. Communication services was the weakest, down 1.11%, with real estate and consumer staples each down about 0.7%.

• Brent is $111.80, up 2.74%. West Texas is $99.21, up 2.12%.

• Gold is $4,086.67, down 1.53%. Silver is down 3.30% at $55.81, and copper is off 2.65%.

• The three-month bill yields 4.159%, the two-year 4.725% and the ten-year 5.036%. The 30-year is 5.353%.

• Euro/dollar is 1.1202. The dollar buys 156.79 yen, down 0.84%. Volatility futures are 19.03. Bitcoin is down 2.64% at $81,869.

• South Korea's KOSPI fell 3.52% overnight, Hong Kong 3.03% and Japan 2.40%.

• Tesla is down about 3.7% before the open after its results.

• Jobless claims are due at 8:30, forecast at 200,000. The leading index follows at 10:00.

THOR Risk Gauge

Neutral. The index strategy is fully invested across the three major American indexes. The even-weight strategy holds 60.7% in three sectors and 39.9% in Treasury bills. Falling yields help, while a risk-off open and Brent near $112 keep the label at neutral.

The THOR View

Meta beat on revenue last night and the stock still slipped. Sales rose 26% to $64.6 billion, and the company guided fourth-quarter revenue to $73 to $76 billion. Capital spending ran $34.9 billion in the quarter. That left free cash flow at negative $2.1 billion, per Meta's release. The shares are down 1.56% before the open, about in line with the Nasdaq 100 futures.

Most of what Meta spends on data centers lands on someone else's income statement. A big share goes to the companies that make the chips, the networking gear and the software that runs them. Those companies live in the technology sector, and the sector is 19.3% of the even-weight strategy. Meta itself sits in communication services, which is outside that strategy's ten-sector universe. Meta also narrowed its 2026 spending plan to $135 to $145 billion... and that's next year's order book for its suppliers. Technology was Wednesday's best sector at 1.67%. This morning chip stocks are trading lower with Asia, where Korea's market gave back its entire Tuesday gain.

The bond market had a bigger morning than stocks. The ten-year yield fell 11.3 basis points to 5.036%, and the two-year fell 9.8 to 4.725%. A move that size says traders see slower growth and a softer Fed ahead of the October 28 decision. Lower yields matter most for companies valued on profits years out, and the Nasdaq 100 is full of them. That's 32.9% of the index strategy. The Dow at 34.0% and the S&P 500 at 33.3% fill out the other two thirds.

Signal Watch

THOR Index Rotation — As of 10/21/26

Fully invested in three near-equal pieces. Wednesday's tech rally barely moved the split, and the Dow is still the largest at 34.0%.

THOR Low Volatility — As of 10/21/26

Three sectors within 1.7 points of each other, plus 39.9% in bills. Technology gained ground on Wednesday's rally while healthcare gave a little back. The other seven sectors stay out until their trends confirm.

THOR AdaptiveRisk Dynamic — As of 10/21/26

The mix runs 45.3% equity, 19.0% alternatives, 15.1% commodity, 14.5% specialty currency and 6.2% fixed income. The commodity fund, the energy sector fund and Exxon add up to 25.5%, and all three lean on oil. Brent is up 2.74% this morning. The dollar fund is second at 14.5%.

One Thing to Watch

Jobless claims land at 8:30, forecast at 200,000 after 199,000 last week. A jump would back up this morning's bond rally and the slower-growth read behind it. Lower long yields help the Nasdaq 100, a third of the index strategy.

Brad Roth / CIO, THOR Financial Technologies

This content reflects the opinions, analyses, and research of THOR Financial Technologies as of the date published. It is provided for informational and educational purposes only and does not constitute investment advice and should not be relied upon as the basis for any investment decision. Past performance doesn't guarantee future results, and all investments involve risk. For more information, please go to: thorft.com