Meta Platforms Inc. reported third-quarter revenue of $64.6 billion after U.S. markets closed, beating the $63.4 billion consensus but delivering earnings per share of $3.83 against a $5.75 forecast once legal settlements flowed through the income statement. In Seoul, that split left pre-market brokers repricing Kospi 200 futures and chip-linked structured notes before the 9 a.m. bell.
Wednesday’s 3.29 percent rebound in the benchmark Korea Composite Stock Price Index had been built on hope that Big Tech could prove AI capital expenditures were translating into cash flow. Meta’s top line supported that narrative; the bottom line complicated it. Traders said memory-sensitive contracts tied to Samsung Electronics and SK hynix were marked down in early screens, while power-equipment names that had rallied with the index held firmer.
What changed overnight
Foreign portfolio managers had turned net buyers of Korean equities on Wednesday, purchasing a net 949.2 billion won worth of Kospi shares after nine weeks of selling. Much of that flow targeted the semiconductor pair that dominates index weight. A profit warning from the company that sets global social-media ad budgets threatens to interrupt that reversal if U.S. cash-flow metrics disappoint again in the December quarter guide.
Domestic strategists noted that Meta had already telegraphed a year of elevated facility spending, with annual capital expenditure guidance approaching $145 billion. The market’s sensitivity, they said, is to free cash flow—the line item that collapsed 91 percent year on year in the prior quarter when build-outs accelerated. Any sign that advertisers are lagging infrastructure bills reopens the “AI debt” debate that knocked the Kospi to a six-month low on Tuesday.
Session mechanics
The Korea Exchange activated a buy-side sidecar on Wednesday when futures jumped more than 5 percent intraday, the 25th such halt this year. Dealers expect similar volatility tools to stay armed Thursday if Meta’s call after the bell introduces new capex figures while Seoul memory stocks gap lower at the open.
Currency desks reported a slightly stronger won as risk appetite flickered, but options markets priced higher implied volatility on chip names than on banks or consumer staples. Retail investors, who sold more than 1.5 trillion won of equities Wednesday, may sit on the sidelines until U.S. peers Microsoft Corp. and Amazon.com Inc. report later in the week.
For index watchers, the immediate question is whether Meta’s revenue strength is enough to keep foreign flows pointed at Korean memory makers, or whether an EPS miss sends them back to the sidelines after a one-day relief rally.