"This year, one of the better performers among the Magnificent 7 had been Meta Platforms Inc. ( NASDAQ: META). But its third-quarter earnings report raised investor concerns about the company's massive capital spending on artificial intelligence initiatives. In addition, Meta says it plans to make significant cuts to the budget of its Reality Labs metaverse division in the coming year. The stock is down 13.6% since the quarterly report was released."
"Strong quarterly reports earlier this year (despite a tax charge) had lent credence to the claim that Meta would continue to outshine its competitors over the next year. The share price hit an all-time high of $796.25 back in August. Due to the recent pullback, the stock is up 4.9% year over year, underperforming the broader market. Furthermore, the near-term future of the economy is uncertain-just like the markets themselves-and Meta Platforms CEO Mark Zuckerberg is a controversial figure."
Meta Platforms experienced a 13.6% stock decline after its third-quarter earnings raised concerns about massive AI capital spending and announced Reality Labs budget cuts. Strong earlier quarterly reports had pushed the share price to an August high of $796.25, but the stock is only up 4.9% year over year and underperforms the broader market. Reality Labs generated $470 million in Q3 2025 but incurred a $4.43 billion operating loss. CEO Mark Zuckerberg is refocusing toward AI while reducing Reality Labs spending, and investors should prepare strategies considering varied price targets and economic uncertainty.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]