Why I'm Rethinking My Bullish Stance on Meta Platforms Stock

Meta Platforms (NASDAQ: META) dropped sharply after its late-October earnings report, even though the social media and digital advertising giant posted another quarter of strong growth. Investors instead zeroed in on management's latest comments about capital spending, which paint a much heavier investment cycle than the market had been expecting.Meta's third-quarter revenue growth was impressive, powered by higher ad impressions and ad prices across its social media properties. Operating income also grew at a double-digit rate, and the core business continues to generate substantial cash. Yet alongside those healthy results, management raised its 2025 capital expenditures outlook again and outlined a 2026 spending plan that looks borderline egregious.Massive capital expenditures don't change Meta's dominance in social media, but they do change how investors should think about its earnings power over the next several years. The scale of this build-out is large enough that it has become increasingly challenging to treat Meta as the asset-light compounder it once was.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool