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Core News Facts
On October 29, 2023, Meta Platforms (NASDAQ: META) reported a net income drop of 83% year-over-year to $2.7 billion for the third quarter ending September 30, largely due to a one-time tax charge exceeding $15.9 billion. Despite the sharp decline, adjusted earnings per share were $7.25, beating analysts’ estimates of $6.69, while revenue increased by 26% to $51.2 billion, surpassing expectations of $49.4 billion.
The company has raised its capital expenditures guidance for the year, now expecting to spend at least $70 billion, up from $66 billion, primarily on artificial intelligence and its metaverse segment, Reality Labs, which reported a $4.4 billion operating loss. Meta’s stock trades at a forward P/E of around 24, slightly above its five-year average, though analysts have lowered price targets to a consensus of $827.60, suggesting a potential upside of about 35% from current levels.
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