Meta Platforms(US:META) Zhong Guo Ji Jin Bao·2025-10-30 14:53Core Viewpoint - Meta's stock price dropped over 10% despite strong earnings, driven by market skepticism regarding its aggressive AI investments [1][2] Financial Performance - In Q3, Meta reported adjusted earnings per share of $7.25 and revenue of $51.24 billion, both exceeding Wall Street expectations [2] - Revenue increased by 26% year-over-year, but net profit was only $2.7 billion, significantly below analyst forecasts due to a $15.93 billion tax expense related to the "Big and Beautiful Act" [2][4] Capital Expenditure and Investment Strategy - Meta raised its 2025 capital expenditure guidance to $70-72 billion from a previous estimate of $66-72 billion to enhance AI capabilities [1] - CEO Mark Zuckerberg defended the company's substantial spending plans, stating that early returns in core business justify increased investment [1][3] Market Reactions and Analyst Concerns - Analysts expressed caution regarding the potential for excessive spending, highlighting a growing tension between large AI infrastructure investments and investor expectations for short-term returns [3] - The stock price drop reflects a shift in investor sentiment towards ongoing high expenditures [3] AI Initiatives and Collaborations - Earlier this year, Meta invested $14.3 billion in AI startup Scale AI and initiated new cloud partnerships to build AI infrastructure [2] - Meta's AI hardware division, Reality Labs, reported an operating loss of $4.4 billion in Q3, with revenue of $470 million, indicating challenges in profitability [4] Debt Issuance Plans - Meta plans to issue at least $25 billion in investment-grade bonds, which would be one of the largest transactions of 2025 [3]