Meta Platforms(US:META) Yahoo Finance·2025-11-12 16:40Core Insights - Meta Platforms (META) is facing market challenges, particularly due to increased capital expenditure (capex) guidance, which has risen from $60 billion-$65 billion for 2025 to $70 billion-$72 billion, leading to a decline in stock performance [1] - The company reported a significant year-over-year decline in earnings per share (EPS) for Q3 2025, dropping 83% to $1.05, primarily due to a one-time non-cash income tax charge of $15.93 billion [10] - Despite these challenges, Meta's revenue for the same quarter was $51.2 billion, reflecting a 26% annual growth, and the company continues to show strong operational metrics, including a rise in daily active users and advertising impressions [11] Financial Performance - Meta's revenue and earnings have experienced compound annual growth rates (CAGRs) of 28.09% and 35.39%, respectively, indicating robust financial health [9] - The company generated $30 billion in net cash from operating activities in Q3 2025, an increase from $24.7 billion in the previous year, and closed the quarter with a cash balance of $10.2 billion against short-term debt of $2.1 billion [12] Market Position and Analyst Sentiment - Analysts maintain a "Strong Buy" rating for META stock, with a mean target price of $843.94, suggesting a potential upside of approximately 35% from current levels [13] - Out of 57 analysts, 45 have a "Strong Buy" rating, indicating strong confidence in the company's future performance despite current market pressures [13] AI and Innovation - Meta's advancements in artificial intelligence (AI) have contributed to improved user engagement and operational efficiency, with notable increases in advertising impressions and average ad pricing [11] - The departure of chief AI scientist Yann LeCun could negatively impact Meta's AI innovation, as he is a key figure in the company's AI research and development [6][7]