"Shares of the Facebook, Instagram, WhatsApp, and Threads parent are up about 13% for the year, while the S&P 500 has climbed about 17%. The gap looks odd given how the business has performed. The company has kept pushing faster growth out of its ad platform across its social media properties -- and it has continued to invest aggressively in AI (artificial intelligence). If that spending does what management hopes, 2026 could be the year the stock rerates higher."
"2025 has been a standout year for the social media company's business. Meta's second-quarter revenue rose an impressive 22%. This was a significant acceleration from 16% growth in Q1. But Meta didn't stop there. The third quarter pushed that pace to 26%, with quarterly revenue reaching more than $51 billion. This growth was fueled by impressive advertising performance. In Q3, Meta's ad impressions rose 14% year over year. Additionally, average price per ad increased 10%."
Meta Platforms delivered accelerating revenue growth in 2025, with Q2 revenue up 22% and Q3 up 26%, pushing quarterly revenue above $51 billion. Advertising strength drove the gains, as Q3 ad impressions rose 14% year over year while average ad prices climbed 10%. The company projects Q4 revenue between $56 billion and $59 billion, implying 19–22% growth. Capital expenditures have surged because of aggressive AI capacity building, increasing the company's long-term investment profile. Those investments could enable higher growth in 2026, but they also raise risk if revenue growth slows and investor confidence weakens.
Read at The Motley Fool
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