Meta stock fell 6% after earnings report, with investors concerned about plans to increase capex spending next year. A $15.9 billion non-cash charge related to deferred tax asset adjustment also impacted stock. Revenue in Q3 surged by 26%, reaching $51.2 billion, driven by strong growth in the core social media business. Active users, ad impressions, and ad prices all rose, supporting revenue growth. Operating margin narrowed to 40% due to increased R&D investment in AI. Earnings per share increased to $7.25, above consensus estimates. Meta’s capital expenditure forecast raised to $70-72 billion, with big plans for AI development and superintelligence. Company continues to lose money on Reality Labs but remains in control of spending. Zuckerberg acknowledges risk of overambitious buildout. Analysts advise against investing in Meta Platforms right now, citing other high-growth stocks with greater potential returns. Stock Advisor’s total average return is 1,072% compared to S&P 500’s 194%.

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