"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, a report from Reuters suggested that a significant portion of Meta's revenue comes from fraudulent ads. The stock is down 18.9% 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 only 4.1% year over year. Furthermore, the near-term future of the economy is uncertain-just like the markets themselves-and"
Meta Platforms showed strong earlier performance among major tech stocks but experienced a sharp pullback after a third-quarter report raised investor concerns about massive AI capital spending and a Reuters report alleging that a significant portion of revenue comes from fraudulent ads. The stock dropped 18.9% since the quarterly report and is up only 4.1% year over year after reaching an all-time high of $796.25 in August. The near-term economic outlook is uncertain and CEO Mark Zuckerberg remains controversial following the metaverse pivot and rebrand. Reality Labs generated $470 million in Q3 2025 revenue but recorded a $4.43 billion operating loss, weakening near-term growth prospects and prompting investors to prepare strategies for multiple outcomes.
Read at 24/7 Wall St.
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