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Meta Platforms Faces Investor Skepticism
Meta Platforms (NASDAQ: META) saw a 15.2% drop in stock value over three days following its third-quarter earnings report on November 3, 2025. Despite this decline, Meta reported $15.6 billion more in cash and marketable securities than long-term debt, maintaining impressive operating margins of 40%, down from 43% in Q3 2024. In the second half of 2025, the company’s performance is down 1.5%, contrasting with a 15.9% rise in the S&P 500 and a 24.7% gain in the Nasdaq Composite.
AI Strategy and Financials
Meta’s strategy includes heavy capital expenditures to build its own AI infrastructure, demonstrating a long-term commitment to growth. Despite losing over $4.4 billion in negative operating income from Reality Labs, the company achieved a 14% increase in ad impressions and a 10% rise in average ad prices. This positions Meta favorably among growth investors as it offers a price-to-earnings ratio of 28.2, making it one of the least expensive stocks among major tech companies.
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