"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's shares rose about 13% year-to-date in 2025 while the S&P 500 climbed about 17%. Revenue growth accelerated through 2025: Q1 grew 16%, Q2 grew 22%, and Q3 grew 26%, with quarterly revenue topping $51 billion. Ad impressions increased 14% year over year in Q3 and average price per ad rose 10%. Management expects Q4 revenue of $56–$59 billion, with the midpoint implying roughly 19% growth. The company is investing aggressively in AI and plans even heavier spending next year, which could enable a 2026 rerating but also increases execution and revenue-risk exposure.
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