"Crockett cited strong advertising momentum and continued investment in AI infrastructure as key growth drivers. The analyst expects: Meta's third-quarter 2025 results to come in near the high end of guidance. Revenue of $49.4 billion, up 22% year over year. Earnings per share (EPS) of $6.69, roughly in line with Wall Street consensus. Revenue growth to moderate slightly to 18% year over year in the fourth quarter"
"Investors will tolerate these spending levels, Crockett says. That's due to Meta's sustained high-teens to low-20% revenue growth trajectory, along with its generative AI and advertising technology. He pointed to Meta's $22 billion in third-party financing for its 5-gigawatt Hyperion data center in Louisiana as a strategic move that could influence its capital outlook while supporting long-term expansion. In his broader industry view, Crockett noted that the digital ad market remains resilient, supported by shifts toward programmatic advertising, connected TV, and generative AI tools."
Meta's advertising technology and AI infrastructure investments are expected to drive another strong quarter. Third-quarter 2025 revenue is forecast near the high end of guidance at $49.4 billion, a 22% year-over-year increase, with EPS around $6.69. Revenue growth is projected to moderate to about 18% in the fourth quarter. Capital expenditures are expected at $66–$72 billion in 2025 and could reach $100 billion by 2026. Free cash flow is forecast to decline from $52.1 billion in 2024 to $40.4 billion in 2025 and $32.2 billion in 2026. A $22 billion third-party financing for the Hyperion data center supports long-term expansion. The digital ad market remains resilient, and Meta and Alphabet appear best positioned among large-cap tech names, with a price outlook tied to maintaining a 20%+ EBITDA CAGR driven by AI innovation.
Read at Benzinga
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