Meta Platforms, listed as NASDAQ: META, had a strong 2025 until Q3 earnings caused a stock tumble, now only up 7% for the year. Despite good Q3 growth, investors were wary of Meta’s aggressive spending plans. However, Meta believes in the potential of AI to improve ad conversion rates and business operations.

In Q3, Meta Platforms exceeded revenue expectations with a 26% year-over-year increase to $51.2 billion. Despite projecting 19% growth in Q4, Meta’s advertising business remains strong. Concerns arise from Meta’s plan to increase capital expenditures significantly, potentially crossing the $100 billion threshold in 2026.

Though investors worry about Meta’s aggressive spending on AI, history shows that a shift to profit mode can lead to stock growth. With Meta’s focus on AI computing capacity, it could be a strong stock to buy. Consider the 10 best stocks identified by The Motley Fool Stock Advisor team for potential high returns.

Read more at Nasdaq: Should You Buy the Dip on Meta Stock?