Key Stats for Meta Stock
- Pre-Market Price change for Meta stock: 2%
- $META Stock Price as of Oct. 20: $698
- 52-Week High: $780
- $META Stock Price Target: $818
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What Happened?
Meta (META) beat revenue estimates for Q3, and the tech stock rose more than 2% in extended trading on Wednesday.
- Revenue came in at $64.6 billion, up 26% from a year ago and above estimates of $63.41 billion.
- Meta posted EPS of $7.40, above estimates of $6.80 per share.
Ad revenue hit $63.1 billion, also up 26% while ad impressions rose 10%, and the average price per ad climbed 14%.
The legal charge on account of a multistate attorneys general agreement pushed total expenses up 68% to $51.6 billion.
Operating income fell 37% to $13 billion, and without the charge, operating income would have risen 11%.
Meta expects Q4 revenue of $73 billion to $76 billion, and the midpoint is $74.5 billion, above the $73.73 billion analysts were looking for.
Capital expenditures were $34.9 billion in the quarter, and free cash flow was negative $2.1 billion. Meta expects 2026 capital spending of $135 billion to $145 billion.
Meta also plans a 2-for-1 stock split through a new class of nonvoting shares.
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What the Market Is Telling Us About Meta Stock
Investors seem to care more about the revenue and the outlook than the legal charge. A one-time hit is easier to look past when ad growth is this strong.
The new Muse AI assistant is also gaining traction. CEO Mark Zuckerberg said more than 10 million people in the U.S. and Canada set up Muse in about six weeks.
About 25% of them use it on a given day.
Still, Muse costs a lot to run, and Meta says it expects to improve compute efficiency more than tenfold over the next year.
Until then, Meta stock carries the risk of big spending with returns that take time.
Legal issues could matter too. Meta said several youth-related trials are scheduled in the coming months in the U.S.
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So what is Meta stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
