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Meta’s Slide Spurs Value Calls as Reported $25 Billion Bond Sale Nears

The debate now centers on heavy AI spending versus strong fundamentals.

Overview

  • Meta shares are down roughly 16%–18% since Oct. 29 after a $15.9 billion one-time tax charge and higher AI capex plans rattled investors.
  • Q3 revenue rose 26% to $51.2 billion and adjusted EPS topped estimates, while Reality Labs posted a $4.4 billion operating loss.
  • Guidance now calls for at least $70 billion in 2025 capital spending to build AI and infrastructure, up from a prior $66 billion floor.
  • A Seeking Alpha author upgraded the stock to Strong Buy with a 12‑month target of $850, citing a forward P/E near 24 and robust growth and margins.
  • Forbes reports Meta aims to sell at least $25 billion of investment‑grade bonds to help fund AI infrastructure, and technical analysis flags support around $600–$663.