AI is booting engagement across Meta's social media platforms and driving interest in Meta glasses, but it comes at the cost of record CapEx spending.

Meta reported its Q3 earnings on October 29. During the earnings call, Meta CEO Mark Zuckerberg said: "More than a billion monthly actives already use Meta AI, and we see usage increase as we improve our underlying models.

Meta Platforms (META) dips as investors worry over AI spending and margins. Read the latest analysis on the stock here.

Shares of Meta Platforms, Inc. (NASDAQ: META) saw a 7.67% drop during the pre-market trading session on Thursday after the company reported a a one-time, non-cash income tax charge in its third-quarter earnings report.

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Despite rising expenses and CAPEX, META's valuation is now attractive, with a 5-year CAGR return estimate of ~16%. Technical and fundamental analysis support a bullish outlook for META, with a target range of $850-1075 per share, Vashi said.

We had another strong quarter with 3.5 billion people using at least one of our apps every day. Building personal superintelligence for everyone, delivering the app experiences and computing devices that will improve the lives of billions of people around the world.

Meta Platforms Inc. (NASDAQ: META) posted upbeat earnings for the third quarter on Wednesday. Meta reported diluted earnings per share of $1.05, which includes a one-time, non-cash income tax charge of $15.93 billion and may not compare to estimates of $6.68. On an adjusted basis, earnings per share came in at $7.25, according to Benzinga Pro.

Meta's Q3 revenue and adjusted earnings both beat expectations, but expenses and capital expenditures grew faster than sales. Management raised its 2025 capital-expenditure outlook and warned that 2026 spending will grow at an even faster rate.

Meta stock crashes 11% after disappointing Q3 earnings report. Shares fell to $667.48. Investors are rattled. A $15.9 billion tax hit crushed profits. EPS dropped to $1.05 versus $6.70 expected. Revenue still jumped 26% to $51.