Meta Platforms(US:META) Sou Hu Cai Jing·2025-11-01 05:24Core Insights - Meta's Q3 2025 earnings report showed revenue exceeding market expectations with a 26% year-over-year increase, but net profit plummeted by 83% to $2.71 billion due to a one-time tax expense of $15.93 billion from Trump's "Big and Beautiful Act" [1][7][8] Financial Performance - Meta's Q3 2025 revenue reached $51.24 billion, significantly above Wall Street's forecast of $49.41 billion, with advertising revenue accounting for $50.08 billion, also up 26% year-over-year [4][6] - The Reality Labs division, which includes Ray-Ban Meta smart glasses, reported $470 million in revenue but incurred a loss of $4.4 billion, maintaining a cumulative loss of over $70 billion since Q4 2020 [6][10] Capital Expenditure and Investment Strategy - Meta's capital expenditures hit a record high of $19.37 billion in Q3, up from $17.01 billion in Q2, with an increased full-year capital expenditure forecast of $70 to $72 billion [10][18] - The company plans to invest at least $60 billion in data centers and infrastructure in the U.S. by 2028, and has aggressively recruited top AI talent with compensation packages ranging from tens of millions to over $1 billion [18][19] Organizational Changes and AI Strategy - Meta has undergone four reorganizations in its AI department over the past eight months, including a recent layoff of 600 employees to create a more agile and responsive AI organization [19][20] - Despite significant investments in AI, Meta's recent product launches, such as the AI glasses and the Vibes AI video stream, have faced criticism for lacking innovation compared to competitors like OpenAI [21][21] Market Reaction - Following the earnings report, Meta's stock price fell by 8% in after-hours trading, resulting in a market capitalization loss of approximately $160 billion, marking one of the largest single-day declines in the company's history [16][16]