Overview
- Meta’s Q3 revenue rose 26% year over year to $51.2 billion, with reported EPS depressed by a one-time noncash tax expense that would have left EPS up 20.2% to $7.25 if excluded.
- Management guided 2025 capital expenditures to $70 billion to $72 billion and said 2026 dollar growth will be notably larger, a stance that contributed to the post-earnings stock slide.
- AI-driven recommendations lifted time spent by about 5% on Facebook and 10% on Threads, while ad impressions climbed 14% and average price per ad increased 10% in Q3.
- Recent commentary from market writers presents the decline as a buying opportunity, and Jim Cramer voiced support for Mark Zuckerberg’s heavy investment strategy to defend Meta’s competitive position.
- Meta is beginning to serve ads on WhatsApp and Threads, which observers say could become larger contributors over time despite near-term spending concerns.