Should You Buy Meta Platforms Stock on the Dip?

Core Insights - Meta Platforms experienced a significant stock decline of 12% following its third-quarter update despite reporting a 26% year-over-year revenue increase to $51.2 billion, surpassing Wall Street's estimate of $49.4 billion [1][2] Financial Performance - Meta reported earnings per share (EPS) of $1.05 based on GAAP, which is an 83% decrease year-over-year, primarily due to a one-time, non-cash tax charge. On an adjusted basis, EPS was $7.25, exceeding analyst expectations of $6.69 [2] Capital Expenditures and Investor Sentiment - The sell-off was largely driven by investor concerns over the increased full-year capital expenditures outlook, which was raised to between $70 billion and $72 billion from a previous forecast of $66 billion to $72 billion. CFO Susan Li indicated that capital expenditures would be notably larger in 2026 than in 2025 as the company invests in AI infrastructure [3][4] Reality Labs Segment - The Reality Labs segment, focusing on augmented and virtual reality, reported a revenue increase of 74% year-over-year to $470 million, but incurred a loss of $4.4 billion, contributing to investor concerns [4] Strategic Vision - CEO Mark Zuckerberg emphasized the positive aspects of the increased capital expenditures, highlighting the company's strategy to build a robust AI infrastructure in preparation for AI superintelligence (ASI). He noted the assembly of a highly skilled team at Meta Superintelligence Labs (MSL) [6][7] Future Outlook - The accelerated investment in AI infrastructure could position Meta as a significant player in the AI superintelligence space, although the company's ability to deliver on its AI initiatives remains a critical question [7]