Overview
- Meta posted Q3 revenue of $51.24 billion, up 26% year over year, with adjusted earnings of $7.25 per share, both ahead of estimates.
- Shares fell more than 10% in a single session following the report as the market focused on expanded artificial intelligence investment plans.
- Management lifted 2025 capital expenditure guidance to $70–$72 billion tied to AI infrastructure and talent, alongside a reported $14.3 billion stake in Scale AI and the launch of Superintelligence Labs.
- The quarter included a $15.93 billion tax charge related to new legislation, which weighed on the reported bottom line.
- Oppenheimer downgraded the stock to Perform, citing limited visibility on returns from the AI outlays through 2027 and comparisons to prior metaverse spending.