Despite broader market headwinds—most notably Intel’s downbeat supply-chain outlook that dragged the Dow down 0.58% on January 23—investors rotated into high-quality growth names, lifting Meta shares by 1.77% that day. The Nasdaq Composite rose 0.28%, driven in part by a more than 5% jump in cybersecurity names and nearly 1.6% in Nvidia, underscoring an AI-led rally that continues to underpin Meta’s equity performance.

In Q3 2025, Meta reported revenue of $51.2 billion, a 26% year-over-year increase, fueled by a 14% rise in ad impressions and a 10% increase in average price per ad across its apps. Daily active users reached 3.54 billion, up 8%, while operating income stood at $20.5 billion. However, rising infrastructure costs for AI computing led to a 32% jump in total costs and expenses, compressing operating margin to 40% from 43% a year earlier.

Meta’s third-quarter capital expenditures hit $19.4 billion, reflecting massive investment in data centers and AI-capable cloud computing. Management guided 2025 full-year CapEx to $70 billion–$72 billion and warned that 2026 spending growth will outpace 2025, with both infrastructure and R&D outlays rising “notably” to support new AI-powered products and underlying platform enhancements.

Trading around 21 times forward earnings—even after a recent pullback—the stock trades at a steep discount to its historical multiples and to peers with similar AI exposure. Analysts have set an average price target implying over 40% upside, citing sustained ad-revenue momentum, strong user engagement metrics, and the potential for improved monetization from AI-driven features. Meta reports Q4 results in late January, where investors will focus on revenue growth guidance, capital-spending trajectory, and profitability trends in its Reality Labs segment.