Meta Platforms Shares Fall Despite Strong Revenue Growth. Is It Time to Buy the Stock on the Dip?

Shares of Meta Platforms (NASDAQ: META) sank despite the social media company reporting strong third-quarter results that easily topped analyst estimates, as investors fret over its capital expenditures (capex) spending. The company said it needs more computing power for its artificial intelligence (AI) initiatives, and as such raised the low end of its capex budget this year from a prior outlook of $66 billion to $72 billion to a new range of $70 billion to $72 billion. It also expects a big increase next year as well. The stock is now up just a little over 10% over the past year, erasing solid earlier gains. Let's take a closer look at Meta's Q3 results and future prospects to see if the dip is a buying opportunity.While the market reaction may not seem like it, Meta turned in very strong Q3 results. Revenue for the quarter surged 26% year over year to $51.24 billion, which was an acceleration from the 22% revenue growth it saw in Q2. Adjusted EPS, meanwhile, climbed by 20% to $7.25. Analysts were only looking for revenue of $49.4 billion and adjusted EPS of $6.69, as compiled by LSEG.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool