Meta Platforms(US:META) 247Wallstยท2025-11-13 13:50Core Insights - Meta Platforms Inc. has faced investor concerns following its third-quarter earnings report, primarily due to high capital expenditures on AI initiatives and issues related to fraudulent ad revenue, resulting in an 18.9% decline in stock price since the report's release [3][10]. - Despite economic uncertainties, Meta's focus on AI is expected to drive growth in 2025, with significant capital expenditures allocated to AI project development and integration [5][19]. - The company's revenue grew by 26% year-over-year to $51.2 billion, surpassing Wall Street's expectations, while earnings per share (EPS) increased by 20% to $7.25, indicating strong performance despite challenges in the metaverse segment [10][11]. Financial Performance - Meta's Reality Labs division generated $470 million in revenue in Q3 2025, up from $370 million in the previous quarter, but reported an operational loss of $4.43 billion [8][9]. - The company raised its 2025 capital expenditure estimate to a range of $70 billion to $72 billion, primarily for AI-related investments [19]. - Analysts have varied price targets for Meta, with a high target of $1,117.00, a median of $841.42, and a low of $560.00, reflecting differing views on the company's future performance [17][18]. Market Outlook - Meta's fourth-quarter 2025 revenue is projected to be between $56 billion and $59 billion, driven by the strength of its advertising business and AI enhancements [13]. - The consensus recommendation among analysts remains to buy shares, with some firms maintaining bullish price targets despite recent downgrades due to increased capex concerns [15][16]. - The company's Threads platform is gaining traction, with monthly active users increasing from 320 million to 350 million, although it still trails behind competitors like X [12].