Should You Buy Meta Platforms Stock Before Oct. 29?

Core Insights - Meta Platforms is heavily investing in capital expenditures to transition towards an AI-focused operation, which is expected to yield uncertain returns [1][5] - The upcoming quarterly report on October 29 is highly anticipated by investors, especially considering the stock's historical volatility around earnings announcements [2] Company Overview - Meta is the parent company of major social media platforms including Facebook, Instagram, Threads, and WhatsApp, with nearly 3.5 billion daily users, representing about 42% of the global population [3] - The user base has grown by 6% year-over-year, but advertising revenue has increased by 19% year-over-year in the first half of 2025, indicating strong performance despite potential saturation [4][6] Financial Performance - Meta's overall revenue reached $90 billion in the first half of 2025, reflecting a 19% increase compared to the same period in 2024, primarily driven by advertising, which constitutes 98% of total revenue [6] - The company reported a net income of $35 billion in the first half of 2025, a 36% increase from the previous year, while keeping cost and expense growth in check [8] AI and Future Growth - Meta is pivoting aggressively into AI, planning to spend between $66 billion and $72 billion in capital expenditures in 2025 to leverage its vast data for AI model training [5] - The Reality Labs segment, which includes AI and VR products, generated only $782 million in revenue in the first half of 2025, indicating that it will take time to become a significant revenue driver despite the substantial investment [7][11] Investment Considerations - The stock currently has a P/E ratio of 26, which is competitive among the "Magnificent Seven" stocks, suggesting it is reasonably priced given the profit growth [9] - Investors are encouraged to consider buying Meta stock before the earnings report, as there is potential for a surge post-announcement, while also being advised to limit their investment to half of their budget [12][13]