Meta Results Trigger Record Outflows From Communication Stocks
Bank of America clients pulled record weekly sums from communication stocks as Meta’s revenue growth coincided with negative free cash flow.
Key takeaways
- Bank of America clients recorded their largest weekly withdrawals from communication stocks since the sector began in 2018.
- Meta’s third-quarter revenue rose 26%, while free cash flow turned negative.
- Clients sold $3.5 billion in individual stocks but added $2.3 billion to stock ETFs.
Bank of America clients withdrew a record amount from communication stocks in the week following Meta’s quarterly results, according to the bank’s weekly flow report. Meta shares fell 6.98% after the results on Oct. 21.
The sector saw its largest weekly outflows since communication services became a separate sector in September 2018, the bank said. It was also the weakest-performing sector during the reporting week.
Across U.S. individual stocks, Bank of America clients were net sellers of $3.5 billion, following about $15 billion in outflows the week before. Retail investors and hedge funds sold, while institutional clients returned as buyers. Stock ETFs drew $2.3 billion in inflows for a second straight week.
Meta reported third-quarter revenue of $64.6 billion, up 26% from a year earlier. Capital spending reached $34.9 billion, exceeding operating cash flow of $32.8 billion, and free cash flow was negative $2.1 billion.
As of Friday afternoon, Meta shares traded at $622.86, down 0.27% from the previous close.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
