Meta’s third-quarter revenue surged 26%, hitting $51.2 billion, with ad revenue making up 98% of total revenue. Operating income reached $20.5 billion, but growth lagged behind revenue. Costs and expenses rose 32%, squeezing free cash flow to $10.6 billion. Despite a heavy investment cycle in AI, the stock is priced attractively at 22 times forward earnings.

Analysts expect Meta Platforms to ramp up spending significantly in 2026, especially in AI-related cloud computing. Q3 saw a raised 2025 capital spending outlook of $70 billion to $72 billion. While the stock is trading at a conservative valuation, risks include AI not delivering expected growth and regulatory scrutiny. With a strong ad business, now may be a good time to buy.

Considered a buy by one analyst, Meta Platforms stock jumped 6% to $648 with a $910 price target. The company boasts robust profits, rapid revenue growth, and a substantial cash position. Wall Street anticipates Meta’s massive investment cycle, leading to increased spending. Investors are cautioned to watch for growth and profitability outcomes amid risks like regulatory scrutiny.

Read more at Nasdaq: Meta Stock Seems to Be Bouncing Back. Is the Growth Stock Now Too Cheap to Ignore?