Meta Platforms reported third-quarter results that beat expectations, with revenue up 26% year over year to $64.6 billion, yet the stock fell more than 7% on Thursday and nearly 10% over the week. Investor concern centres on free cash flow turning negative at $2.1 billion, the first negative figure since the company went public in 2012, and AI infrastructure spending rising 80% to nearly $35 billion. Management raised full-year capital expenditure guidance to $135–145 billion from $130 billion and plans a new class of nonvoting shares to help fund growth, which could dilute existing shareholders. The author says AI investments are boosting ad performance and engagement and that negative free cash flow could persist for several quarters, but views the dip as attractive given revenue growth, a market cap approaching $2 trillion and a reasonable valuation compared with tech peers.
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Related tickers and likely impact
META
▲ Likely positiveMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/23/2026 | 642.26 |
| Change that session | -1.02% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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