Meta Stock: AI Spending Surge Pressures Margins Despite Revenue Beat

TLDR Meta’s Q3 revenue hit $51.2 billion (up 26%) but EPS of $1.05 badly missed the $6.72 estimate due to a one-time charge. Operating margin contracted to 40% from 43% as AI costs accelerate faster than revenue growth. The company raised 2025 capex guidance to $71 billion and expects even larger spending increases in 2026. [...]

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