Meta Platforms released its third-quarter results, surprising Wall Street with strong revenue growth but taking a hit from a large tax expense.
The stock dropped 9% in after-hours trading, cutting billions from its market value overnight. Yet while the market reacted sharply, investors on X are calling it a buying opportunity. Could this drop be the start of a long-term gain for the tech giant?
Key Takeaways On Meta Stock Falls
- Meta’s Q3 revenue reached $40.4 billion, beating expectations of $39.5 billion.
- Earnings per share (EPS) fell 83% due to a $15.9 billion one-time tax charge.
- Capital spending for 2025 raised to $70–72 billion, signaling big AI investments.
- User base now stands at 3.3 billion monthly actives, up 5% year-over-year.
- Market sentiment on X shows a 60/40 split, slightly more bullish than bearish.
Strong Growth Despite Heavy Tax Hit
On October 29, 2025, Meta reported Q3 revenue of $40.4 billion, topping analyst estimates. That’s an 11% increase from last year, led by steady ad performance across Facebook, Instagram, and WhatsApp. The company’s user base also expanded, reaching over 3.3 billion monthly active users, up 5% from 2024.
However, the EPS fell to $5.50, down 83% from last year. The drop came from a one-time $15.9 billion non-cash tax expense, linked to policy changes under President Trump’s “One Big Beautiful Bill Act,” which reshaped corporate tax rules.
AI Spending Surges to New Highs
Meta raised its 2025 capital spending forecast to $70–72 billion, up 9% from earlier guidance. The money is aimed at scaling AI infrastructure, expanding data centers for its Llama models, and pushing into smart glasses.
CFO Susan Li also noted that expenses could grow further in 2026 due to hiring AI engineers and higher cloud costs.
The stock closed at $734, down from $750 before the earnings release. Analysts are watching the $690 support level after an 11% slide over the past nine days.
Trading volume reached 25 million shares, about three times last year’s levels.
What the Market Is Saying
On X, the reaction is mixed but lively. Many traders see the decline as a classic “buy the dip” setup.
| Metric | Actual/Estimate | YoY Change | X Vibe |
|---|---|---|---|
| Revenue | $40.4B (beat) | +11% | Bullish: “Ad machine still winning” |
| EPS | $5.50 (miss) | -83% (tax effect) | Mixed: “Temporary drag, strong base” |
| Capex Guidance (2025) | $70–72B | +9% | Split: “AI bet vs. high spend” |
| User Growth (MAUs) | 3.3B+ | +5% | Positive: “Still unmatched reach” |
| Reality Labs Revenue | Down QoQ | -10% | Neutral: “Hardware still lagging” |
The revenue beat and strong user growth highlight Meta’s solid fundamentals, while the tax charge and rising costs raised short-term concerns.
Social Buzz and Investor Reactions
Investor sentiment on X remains split but leaning optimistic. Influencers highlight Meta’s AI ambitions and strong cash flow as reasons for confidence. Posts celebrating the company’s forward P/E of 22x and over $50 billion in free cash flow are gaining traction.
On the other hand, critics argue that Reality Labs’ $4.4 billion loss and Europe’s privacy issues could weigh on profits. Some call the rising capital expenses a “spending risk” rather than a growth play.
Still, there are positives: Meta’s clean energy partnership with ENGIE drew attention from sustainability-focused investors. The company’s AI-powered “Vibes” video feed helped boost Meta AI installs by 56%, showing progress beyond social ads.
