Overview
- Meta reported Q3 revenue of $51.24 billion and earnings of $7.25 per share, up 26% from a year earlier.
- A $15.93 billion tax charge tied to new legislation weighed on the quarter’s reported profit.
- Management lifted 2025 capital spending guidance to $70–$72 billion for AI infrastructure and talent, including a reported $14.3 billion stake in Scale AI and the launch of Superintelligence Labs.
- Shares fell more than 11% after the update as Oppenheimer cut the stock to Perform, citing uncertain payback and limited visibility until 2027, with the firm noting Alphabet’s similar 2027 P/E and potentially faster 2026 growth in Search.
- Meta’s ad engine remained healthy with 14% more impressions and a 10% higher average price per ad, and earlier disclosures credited AI tools with boosting conversion rates on Instagram and Facebook.