Meta (META) Up 2% After Q3 Beat; Tesla (TSLA) Shares Drop 3% on Earnings

Published on 10/22/2026 · Source: cnbc.com

AI Summary

Summarized by AI from the source below

U.S. stock futures declined after third-quarter earnings from Meta Platforms (META) and Tesla (TSLA) were released. S&P 500 futures fell 0.5%, Nasdaq-100 futures dropped 0.7%, and Dow Jones Industrial Average futures slid 0.3% or 170 points. Asian markets also opened lower, with South Korea's Kospi down more than 1%, Japan's Nikkei 225 declining 0.73%, Australia's S&P/ASX 200 falling 0.53%, Hong Kong's Hang Seng Index down over 2%, and China's CSI 300 dropping 0.37%.

Meta’s shares rose 2% in after-hours trading following a revenue beat and strong guidance for the current quarter. Tesla reported better-than-expected revenue and earnings for Q3, but its shares fell 3%. According to a Yorkville Ives analyst, Meta’s AI investments are starting to yield results, and spending is better controlled than expected as the company narrowed its full-year data center capital expenditure range.

The positive earnings follow a strong Wall Street session, where the S&P 500 had a three-day winning streak and the Nasdaq Composite gained 1%, supported by strong performances from SpaceX, Micron Technology, Advanced Micro Devices, and Super Micro Computer. Investors will watch upcoming earnings from other major companies and economic data releases like weekly jobless claims. These earnings results are relevant as they show mixed reactions in key tech stocks, affecting futures and market sentiment.

Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.

Our take

Opinion from the Newsstocks AI desk, not investment advice

The mixed market reactions to these earnings show differentiation among tech giants. Meta's positive guidance and AI focus are potential strengths. Tesla's share decline despite earnings beat may reflect concerns about other factors. Ongoing economic data and upcoming earnings will further clarify market direction.

Key numbers

S&P 500 futures change: fell 0.5%
Nasdaq-100 futures change: dropped 0.7%
Dow futures change: down 0.3%, or 170 points
Meta share move: gained 2%

What could help

Meta's revenue beat and strong current quarter guidance indicate growth potential.
AI investment payoff noted by analysts could support Meta's business prospects.

What could hurt

Tesla shares declined despite beating earnings, suggesting investor concerns.
Asian markets and U.S. futures fell, signaling broader market pressure.

What to watch next

Earnings reports from Procter & Gamble, Lockheed Martin, Valero Energy, and Honeywell, along with weekly initial jobless claims release on Thursday.

The background

Earnings reports provide companies' financial results and can influence stock prices. Futures show expected market moves before the trading day begins.

Questions readers ask

Why did Meta (META) shares rise after earnings?

Meta gained 2% in extended trading due to beating revenue expectations and issuing strong guidance for the current quarter.

How did Tesla (TSLA) stock react to their Q3 earnings?

Tesla shares fell 3% despite reporting better-than-expected revenue and earnings.

What broader market movements occurred after Meta and Tesla earnings?

S&P 500 futures fell 0.5%, Nasdaq-100 futures dropped 0.7%, and Dow futures fell 0.3%, with Asian markets also opening lower.

About Meta Platforms Inc. (META)

Meta Platforms owns Facebook, Instagram, WhatsApp, and Messenger, earning almost all of its revenue from digital advertising while investing heavily in AI and the metaverse.

The Communication Services sector covers media, entertainment, telecom and interactive companies that connect and inform people.