"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 21.4% since the quarterly report was released."
"The share price hit an all-time high of $796.25 back in August. Due to the recent pullback, the stock is up only fractionally year over year. Furthermore, the near-term future of the economy is uncertain-just like the markets themselves-and Meta Platforms CEO Mark Zuckerberg is a controversial figure. Certainly, Zuckerberg's sudden shift to the metaverse and brand name change to Meta Platforms raised a few eyebrows several years ago."
Meta Platforms experienced a strong run earlier in the year but fell after a Q3 earnings report raised concerns about heavy capital spending on artificial intelligence initiatives. A Reuters report suggested a significant portion of Meta's revenue may come from fraudulent ads. The stock declined 21.4% after the quarterly report and is only fractionally higher year over year following a peak of $796.25 in August. Reality Labs generated $470 million in Q3 2025 revenue but incurred a $4.43 billion operating loss. CEO Mark Zuckerberg's prior pivot to the metaverse remains controversial while the company shifts focus amid a bullish market trend.
Read at 24/7 Wall St.
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