Meta Platforms' stock is down about 18% from its October high after a poorly received third-quarter report, with revenue up 26% but earnings hit by a $9.89 billion settlement with U.S. state attorneys general over teen health. The market has also reacted to negative free cash flow from heavy AI spending and a plan to issue $95 billion in new shares, which would dilute existing shareholders. The author notes the stock trades at 17.5 times 2027 earnings and sees these reactions as valid in the short term, though long-term investors could view the spending favorably if it delivers strong returns. The author considers the stock an acceptable investment at current levels and expects a rebound, but says Meta must show strong growth in the coming years to justify its spending.
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Related tickers and likely impact
META
• NeutralMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.6T |
| Close on 10/30/2026 | 614.99 |
| Change that session | -1.53% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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