Apple and Meta Struggled in August But Which Looks Stronger in September?
Apple and Meta both stumbled through August, but their earnings reports reveal two very different companies heading into a September packed with product launches, legal settlements, and AI spending decisions that could swing either stock hard.
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Apple (NASDAQ:AAPL | AAPL Price Prediction) and Meta Platforms (NASDAQ:META) both wobbled through August, yet their July earnings reports told sharply different stories. Apple posted a $109.4 billion clean sweep powered by iPhone 17 demand. Meta grew revenue 27.96% but missed EPS as AI spending, legal charges, and severance carved into margins.
iPhone 17 Carries Apple. Legal Bills Bruise Meta.
Apple’s June quarter reached iPhone revenue of $54.3 billion, up 22%, with Tim Cook calling it a response to the “iPhone 17 family” he described as exceptional. Services hit $30.7 billion, up 12%, with paid subscriptions surpassing $1.5 billion. EPS came in at $2.02, a 6.8% beat, though roughly $0.11 came from tariff refunds. That is a real tailwind, but not a repeatable one.
Meta’s story was messier. Ad revenue jumped 27% to $59.36 billion, ad impressions rose 14%, and price per ad climbed 12%. Yet EPS of $6.18 missed by 14.42%, snapping a six-quarter beat streak. The culprits: $2.40 billion in legal charges, $1.18 billion in severance, and CapEx that surged to $30.116 billion. Free cash flow cratered 91.31% to $784 million.
Ecosystem Cash Machine vs. AI Moonshot
| Lens | Apple | Meta |
| Core Bet | iPhone 17 cycle plus Services | AI compute and superintelligence |
| 2026 CapEx Signal | Measured, Broadcom deal exceeding $30 billion | $130 to $145 billion |
| Margin Reality | Q4 guide 47% to 48% gross | Operating margin fell to 31% from 43% |
Apple is monetizing its 2.5 billion active device base while spending carefully on R&D. Zuckerberg is doing the opposite, telling investors “AI is accelerating our core business today” while betting a nine-figure quarterly CapEx bill will compound later. That buildout has to be powered, cooled, and networked by somebody, and we pulled seven of those suppliers into a free AI infrastructure report. One approach prints cash now. The other asks shareholders to wait.
September Catalysts Favor Cupertino
Apple guided September-quarter revenue growth of 9% to 11%, though Cook flagged a “100-year flood on the memory pricing” squeezing costs. I will watch whether the iPhone launch offsets that pressure. Meta’s Connect event on September 23rd and its Q3 guide of $61 to $64 billion matter, but so does the $16.68 billion settlement chatter dominating Reddit.
Why I Lean Apple Into September
For my own money, Apple looks stronger heading into September. The setup is boring in the best way: a hardware launch, a Services business hitting records, and shareholder returns backed by $147 billion in cash. Meta’s ad engine is remarkable, and long-term believers in Zuckerberg’s AI capital expenditure thesis have a real case. If you want turnaround-style variance and can stomach open-ended regulatory and spending challenges, Meta fits. If you want clearer revenue visibility, Apple is the cleaner September trade.
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Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.
