Meta Platforms (META) experienced a sharp post-earnings selloff, driven more by investor psychology than company fundamentals, despite strong Q3 revenue growth. META's increased R&D and capex spending spooked investors, but these investments are fueling tangible AI-driven growth, unlike the earlier Metaverse pivot. My MS-ARIMA model projects 2026 EPS of $37.04 and a price target of $893, implying 40% upside; stock remains undervalued despite broken momentum.
Evaluate Meta Platforms' (META) reliance on international revenue to better understand the company's financial stability, growth prospects and potential stock price performance.
Meta Platforms, Inc. reported Q3 FY2025 results showing revenue growth but declining EPS, driven by slowing ad growth in key markets. META's AI initiatives, including Llama LLMs and major datacenter investments, have yet to yield significant traction or profitability outside its core apps. Capital expenditures are surging, with the Hyperion datacenter joint venture reflecting strategic flexibility but also highlighting high spending versus monetization.
Meta Platforms stock is up 8% this year – lagging Nasdaq's 22% rise.
Meta Platforms ( NASDAQ:META ) is once again pouring billions into a futuristic vision, this time with artificial intelligence (AI) at the center.
Facebook's free dating service has 21 million users, more than the popular dating app Hinge, as the social network reinvents itself.
Meta Platforms is doubling down on AI development, driving near-term margin compression but positioning for long-term growth and monetization opportunities. META's advertising business remains robust, with AI-powered tools boosting ad revenue. Social media adoption and user utilization remain strong, with Reels reaching a $50 billion annual run rate.
Steel Grove Capital Advisors LLC acquired a new position in Meta Platforms, Inc. (NASDAQ: META) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 20,953 shares of the social networking company's stock, valued at approximately $15,465,000. Meta Platforms accounts for 1.8% of Steel
Family Capital Management Inc. boosted its stake in shares of Meta Platforms, Inc. (NASDAQ: META) by 35.5% during the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 687 shares of the social networking company's stock after purchasing an additional 180 shares during the period. Family Capital
Meta Platforms is a compelling BUY after an overdone sell-off driven by a one-time tax charge, not operational weakness. META's advertising business remains dominant, with strong ad impression growth, pricing power, and robust Family of Apps engagement. Despite high CapEx and Reality Labs losses, META's exceptional ROIC and undervaluation versus peers support long-term value creation.
The company is testing the math behind the artificial-intelligence buildout: How long can you increase capital expenditures out of cash flow—and what do you do when you hit the wall?
AI momentum meets market strength this November as QUALCOMM, Microsoft, and Meta emerge as top Driehaus strategy picks.