META vs. MSFT: Which Is the Better Stock to Buy for the Next 10 Years?

Core Insights - Meta's Reality Labs segment revenue increased by 74% to $470 million, driven by AI glasses and Quest headset sales, despite operating losses of $4.4 billion in Q3 [1] - Total revenue for Meta rose by 26% to $51.2 billion, with adjusted earnings per share increasing by 20.2% to $7.25 [1] - The company invested $19.4 billion in capital expenditures, focusing on infrastructure, while maintaining strong free cash flow of $10.6 billion [1] - Meta's FoA segment revenue, encompassing all social media platforms, also saw a 26% increase to $50.8 million, with advertising revenue reaching $50.1 billion [2] - Meta's user base continues to grow, with over 3.5 billion daily users across its platforms and Instagram surpassing 3 billion monthly active users [3] Financial Performance - Meta's operating losses in the Reality Labs segment were significant at $4.4 billion, indicating ongoing investment in the metaverse [1] - The company returned $3.2 billion to shareholders through stock buybacks and $1.3 billion in dividends, showcasing a commitment to shareholder value [1] - Meta's balance sheet is robust, ending the quarter with $44.4 billion in cash and $28.8 billion in debt [1] Market Position - Meta is valued at $1.6 trillion and is recognized as a leader in social media, messaging, and virtual reality products [4] - The stock has gained 8.5% year-to-date, underperforming compared to the Nasdaq Composite Index's gain of 22.4% [4] - Analysts have a consensus "Strong Buy" rating for META stock, with an average price target suggesting a potential upside of 33.1% [8] Competitive Landscape - Meta is evolving from a social media giant to a leader in AI-driven content and the metaverse, positioning itself for long-term growth [5] - The company is seen as a key player in the technology sector alongside Microsoft, which has a more diversified product portfolio [6][16] - Zuckerberg envisions a transformative decade for Meta, focusing on integrating its apps into a unified AI system and developing products that merge digital and physical worlds [7]