Meta reported third-quarter revenue up 26% to $64.6 billion, beating the $63.37 billion consensus, and adjusted EPS of $7.40 excluding a large legal settlement, versus $5.75 expected. Advertising revenue rose 26% on a 14% higher average ad price and a 10% increase in impressions, with AI tools improving ad targeting. Reality Labs posted revenue down 6% to $443 million and an operating loss of $4.1 billion, while the new Muse AI agents drew over 10 million users in the U.S. and Canada about a month and a half after launch. Meta forecast fourth-quarter revenue of $73 billion to $76 billion, but free cash flow was negative $2.1 billion in the quarter as capex reached $34.9 billion. The author views the stock as attractively valued, trading at a forward P/E of 19 based on 2027 estimates.
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Related tickers and likely impact
META
▲ Likely positiveMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/22/2026 | 648.91 |
| Change that session | -6.97% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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