'Aggressive' Spending Spooks Meta Platforms Investors. Should You Buy the Dip in META Stock?

Financial Performance - Meta Platforms reported adjusted earnings of $7.25 per share on revenue of $51.24 billion, exceeding consensus estimates [2] - Revenue in Q3 2025 rose 26% year-over-year, marking the company's strongest growth rate in 18 months [2] - The company absorbed a one-time tax charge of $15.93 billion related to recent tax legislation, which will reduce future cash tax payments [2] Capital Expenditure and Investment Strategy - Meta projected capital spending to range between $70 billion and $72 billion in 2025, above the previous midpoint guidance of $69 billion [4] - CEO Mark Zuckerberg defended the aggressive investment strategy, stating the need to build capacity ahead of potential breakthroughs in superintelligence [4] - Meta's recent investments include $14.3 billion in AI startup Scale AI and multiple cloud deals to enhance AI capabilities [5] AI and Reality Labs Division - The Reality Labs division reported a $4.4 billion operating loss on $470 million in sales during the quarter, with cumulative losses exceeding $70 billion since late 2020 [6] - Despite losses, the Ray-Ban AI glasses are gaining traction, with the $799 display version selling out quickly [6] - Zuckerberg outlined an ambitious vision for establishing Meta as a leading frontier AI laboratory, serving 3.5 billion daily active users across its family of apps [8]