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Meta Platforms Q3 2023 Earnings Overview
Meta Platforms (NASDAQ: META) reported a third-quarter revenue of $51.2 billion, representing a year-over-year increase of 26%. The company plans to significantly increase its spending, forecasting total expenses of $116 billion to $118 billion and capital expenditures between $70 billion and $72 billion for 2025, with expectations for even higher spending in 2026.
Key metrics showed a 14% increase in ad impressions and a 10% rise in average ad prices year-over-year. However, free cash flow fell from $15.5 billion to $10.6 billion as the company’s investments in AI infrastructure weigh heavily on cash flow. This substantial spending raises concerns among investors about the potential returns on investment.
Despite the current sell-off in stock prices, Meta’s ongoing revenue growth and strong balance sheet may present opportunities for long-term investors willing to accept the risks associated with aggressive capital expenditure.
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