Meta Platforms Stock Is Down Sharply Already in 2026: Time to Buy?

Core Insights - Meta Platforms' shares have declined approximately 8.5% year to date in 2026, adding to a rough end to 2025, with a 20% drop since the third-quarter earnings report on October 29 [1][2]. Financial Performance - Meta's third-quarter revenue increased by 26% year over year, up from 22% in Q2, with significant contributions from AI advancements [5]. - The company's income from operations rose 18% year over year to $20.5 billion in Q3, and free cash flow reached nearly $11 billion in the same quarter [6]. - Meta's valuation is conservative at 27 times earnings, with a forward price-to-earnings ratio of just 21, indicating a potentially attractive investment opportunity [7]. Business Growth - Meta is experiencing strong business momentum, with rapid growth across its platforms, including Facebook, Instagram, WhatsApp, Threads, and Meta AI [4]. - The annual revenue run rate for Meta's AI-powered ad tools has surpassed $60 billion, reflecting the effectiveness of its AI ranking systems in the advertising business [5]. - Meta AI has over 1 billion monthly active users, showcasing explosive growth in user engagement [5]. Future Outlook - The company plans to invest over $100 billion in capital expenditures next year, primarily focused on AI compute [8].