"Shares of Meta Platforms Inc. (NASDAQ: META) gained 7.19% over the past five trading sessions after losing 4.94% the five prior. The fallout from concerns over its AI CapEx announced during the company's Q3 earnings report continues to fuel investors' fears, as does the broad market's AI-induced sell-off that began in late October. Those factors have dragged down the Magnificent Seven member's year-to-date performance to a gain of just 6.17%."
"When the company reported Q3 earnings on Oct. 29, it announced quarterly revenue of $51.24 billion, beating analysts' expectations of $49.41 billion by 26.2%. Adjusted EPS came in at $7.25, beating expectations of $6.69 by 20.2%. But GAAP ESP of $1.05 fell 82.6% short of expectations of $6.70. Still, the company's third-quarter sales rose 26% year-over-year, which is its highest revenue growth since FY 2024 Q1."
"This year, META announced - alongside authorizing a $50 billion stock buyback - that shares of META would begin paying a dividend. And while its current yield of 0.33% may not seem like much, at its current price, that equates to 52 cents per share quarterly, or $2.08 per share annualized. As the dominant player in the social media landscape, Meta Platforms is now branching out more broadly into tech, and specifically, the artificial intelligence (AI) space."
Meta Platforms experienced short-term share volatility tied to AI capital expenditure concerns and a broader AI-driven market sell-off, resulting in a modest 6.17% year-to-date gain. Quarterly revenue reached $51.24 billion and adjusted EPS was $7.25, both beating expectations, while GAAP EPS of $1.05 missed forecasts. Third-quarter sales grew 26% year-over-year, the strongest since FY2024 Q1. The company authorized a $50 billion stock buyback and initiated a dividend with a 0.33% yield, equal to $2.08 annualized. Long-term revenue growth from 2014 to 2024 exceeded twelvefold, largely driven by advertising, while AI investment now drives future forecasts.
Read at 24/7 Wall St.
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