Meta reported third-quarter revenue growth of 26% year-over-year, driven by a 14% increase in ad impressions and a 10% rise in average price per ad. Daily active users across its family of apps climbed 8% to reach 3.54 billion, underscoring continued engagement on core platforms despite broader market uncertainty.

The company deployed $19.4 billion in capital expenditures during the quarter, funding expansion of AI-capable data centers and network upgrades. Management raised full-year capex guidance to a range of $70 billion to $72 billion, signaling an even larger investment cycle in 2026 as Meta seeks to support its growing suite of generative AI services and internal compute needs.

Shares trade at roughly 21 times forward earnings, a notable discount compared with peers of similar scale and growth profiles. Following the recent pullback, several firms have reiterated Buy ratings and price targets implying more than 40% upside, citing the combination of accelerating top-line momentum and a strong balance sheet with over $44 billion in net cash.

In response to parental concerns and pending regulatory scrutiny, Meta will suspend teenage access to its conversational AI characters across all apps while it develops an age-appropriate version featuring built-in parental controls. This move highlights the company’s effort to balance innovation in AI experiences with enhanced protections for younger users.