Meta Platforms(US:META) 3 6 Ke·2025-10-30 07:27Core Viewpoint - Meta is facing significant challenges despite a strong revenue increase, primarily due to a massive tax expense linked to Trump's "Big and Beautiful Act," which has severely impacted its net profit [1][6][7]. Financial Performance - In Q3 2025, Meta reported revenue of $51.24 billion, a 26% year-over-year increase, surpassing Wall Street's expectations of $49.41 billion [5]. - Advertising revenue constituted the majority, reaching $50.08 billion, also up 26% year-over-year [5]. - However, net profit plummeted to $2.71 billion, an 83% decline compared to the previous year, largely due to a one-time tax expense of $15.93 billion [6][8]. Capital Expenditure and Investment - Meta's capital expenditure reached a record high of $19.37 billion in Q3, up from $17.01 billion in Q2, with an annual forecast of $70 to $72 billion, indicating a significant increase from previous years [10][22]. - The company is investing heavily in AI infrastructure and talent, with plans to invest at least $60 billion in data centers and infrastructure by 2028 [22]. AI Strategy and Organizational Changes - Over the past eight months, Meta has undergone four reorganizations of its AI department, including a recent layoff of 600 employees to make the organization more agile [3][23]. - Despite these efforts, the company has yet to see substantial results from its AI initiatives, with recent product launches receiving mixed reviews [26][29]. Market Reaction - Following the earnings report, Meta's stock price fell by 8% in after-hours trading, leading to a market capitalization loss of approximately $160 billion, marking one of the largest single-day declines in the company's history [19][20].