Should You Buy the Dip on Meta Stock?

Core Insights - Meta Platforms has experienced volatility in its stock performance, with a strong start to 2025 followed by a decline after a disappointing Q3 earnings report, resulting in only a 7% increase for the year [1][2] Financial Performance - In Q3, Meta reported a revenue growth of 26% year over year, reaching $51.2 billion, surpassing expectations of 20% growth to $48.75 billion [6] - The company anticipates a moderation in growth for Q4, guiding for a 19% increase at the midpoint [6] Investment and Spending Plans - Meta's capital expenditure plans are aggressive, with expectations to spend between $70 billion to $72 billion in 2025, a significant increase from $39.2 billion in 2024 [9] - Management indicated that capital expenditure growth will be "notably larger" in 2026, suggesting total expenditures could exceed $100 billion [9] Business Strategy and AI Initiatives - Meta is focusing on artificial intelligence to enhance ad conversion rates, with AI recommendations leading to increased user engagement on platforms like Facebook and Threads [5] - Despite the potential benefits of AI, investors are concerned about the company's spending in this area, reminiscent of past investments in the metaverse that did not yield expected results [4][8]