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Meta Stock Rebounds After AI Spending Fears Trigger Selloff
Meta Stock Rebounds After AI Spending Fears Trigger Selloff
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BTCCSquare news:
Meta Platforms shares ROSE 2.26% to $647.95, clawing back from a 25% plunge since October highs. Investors initially balked at the company's plan to spend $150 billion on AI infrastructure by 2026—a 108% increase from 2025 levels—but fundamentals tell a different story.
Q3 revenue surged 26.3% year-over-year to $51.24 billion, beating estimates by 3.7%. Ad impressions jumped 14% while average ad prices rose 10%, driving EPS up 20.2% to $7.25. Daily active users across Meta's platforms now total 3.54 billion, an 8% annual increase.
The stock trades at a forward P/E of 22.8x, a 30-40% discount to peers like Nvidia and Microsoft. Talks with Alphabet about procuring lower-cost TPUs could further optimize capital expenditures.
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