"Shares of Meta Platforms Inc. (NASDAQ: META) lost 4.94% over the past five trading sessions after losing 0.78% 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 sell-off that began in late October. Those factors have dragged down the Magnificent Seven member's year-to-date performance to a loss of 0.26%."
"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."
Shares of Meta Platforms declined after recent trading sessions, pressured by investor concerns over AI capital expenditures and a broader late-October market sell-off that reduced year-to-date performance to a 0.26% loss. Q3 revenue totaled $51.24 billion, beating expectations, and adjusted EPS was $7.25, above estimates, while GAAP EPS of $1.05 missed dramatically. Third-quarter sales rose 26% year-over-year, the highest since FY2024 Q1. The company authorized a $50 billion buyback and initiated a dividend yielding 0.33% (about $2.08 annualized). Decade-long revenue and net income growth was primarily driven by advertising.
Read at 24/7 Wall St.
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