Is Meta Stock a Buy or a Sell Before Michael Burry Drops His Bombshell on November 25?

Core Insights - Meta Platforms has experienced a significant decline, losing nearly 25% of its value from its peak and entering a bear market, with stock prices dropping below $600 [1] - Following the Q3 2025 earnings release, Meta's stock fell below $700 due to increased capex guidance for 2025 and anticipated higher expenses in 2026, raising market concerns about tech companies' AI-related capital expenditures [2] - Meta's 2025 capex is projected to be around 36% of the expected $199 billion in revenue, indicating aggressive investment in AI despite scrutiny over the AI stock rally [4] Financial Performance - The company raised the midpoint of its 2025 capex guidance, indicating "upward pressure" on capital expenditures and expenses for 2026, which will be "notably larger" than in 2025 [2] - Analysts predict Meta will generate $199 billion in revenue in 2025, with a significant portion allocated to AI capex [4] Market Sentiment - Michael Burry has raised concerns about potential accounting fraud among Big Tech companies, including Meta, suggesting that they may be overstating earnings by 20.8% by 2028 due to depreciation accounting practices [5] - The debate around the AI bubble is polarized, with some analysts like Dan Ives maintaining a bullish outlook on Meta, setting a target price of $920, while others express skepticism [6]