Meta Platforms(US:META) Hua Xia Shi Bao·2025-10-31 00:34Market Overview - On October 30, US stock indices collectively declined, with the Dow Jones down 0.23% to 47,522.12 points, the S&P 500 down 0.99% to 6,822.34 points, and the Nasdaq Composite down 1.57% to 23,581.14 points, ending a streak of record highs [2][3] Company Performance - Meta Platforms reported a significant drop in stock price, falling 11.33% after its quarterly earnings announcement, while Microsoft also saw a decline of 2.92%. Investor concerns were raised regarding the increasing expenditures in the AI sector for both companies [4] - Meta's Q3 revenue reached $51.24 billion, a 26% year-over-year increase, but net profit plummeted 83% to $2.71 billion, with earnings per share at $1.05, significantly below the market expectation of $6.68 [4] - The drastic decline in Meta's profits was primarily attributed to a one-time non-cash tax expense of $15.93 billion resulting from the "One Big Beautiful Bill Act," which raised the effective tax rate from 12% to 87% compared to the previous year [4][5] - Meta's total costs and expenses for Q3 were $30.7 billion, a 32% increase year-over-year, outpacing the revenue growth and leading to a contraction in operating profit margin from 43% to 40% [4] Adjusted Financials - Excluding the tax impact, Meta's Q3 net profit would have been $18.64 billion, with diluted earnings per share of $7.25, reflecting a 20% year-over-year growth and surpassing market expectations of $6.69 [5] Workforce Adjustments - Meta plans to lay off approximately 600 employees in its AI division as part of efforts to streamline operations and enhance efficiency following a period of significant expansion [5] Semiconductor Sector - The semiconductor sector faced pressure, with the Philadelphia Semiconductor Index declining by 1.53%, and 22 out of 30 component stocks falling. Notable declines included AMD down 3.59%, Broadcom down 2.46%, and Nvidia down 2%, with its market capitalization dropping below $500 billion [7][8] Other Tech Stocks - Other major tech stocks also experienced declines, with Tesla down 4.63%, Oracle down 6.69%, and Palantir down 2.14%. However, Apple saw a slight increase of 0.63%, with a post-market surge of nearly 4% following a 6.1% year-over-year growth in iPhone revenue [8]