Meta Q3 Earnings: Can Meta Justify Its Massive AI Bet?

Meta Q3 Earnings: Can Meta Justify Its Massive AI Bets?Meta Q3 EPS PreviewZacks Rank #2 (Buy) Meta Platforms (META) will report third-quarter 2025 earnings results after the US equity market close on Wednesday, October 29, 2025.META Stock Performance and Expected MoveYear-to-date META shares are performing broadly in line with the Nasdaq 100 Index, gaining ~26% thus far in 2025. However, META shares are up nearly 200% over the past five years.Meanwhile, the options market is implying a post-earnings move of +/- 7.1%. Over the past four quarters, the average post-earnings move for META has been 5.28%.META Analyst Expectations & EPS Surprise HistoryZacks Consensus Analyst Expectations anticipate that Meta will earn revenue of $49.45B in Q3 and EPS of 6.61, resulting in year-over-year EPS growth of 9.62%.Image Source: Zacks Investment ResearchAhead of earnings, Wall Street analysts are very bullish on the stock. META earns a Zacks Rank #2 (Buy), and several analysts have revised their earnings expectations higher over the past two months.Image Source: Zacks Investment ResearchMeanwhile, META has a tremendous track record of outperforming Wall Street expectations, beating estimates in eleven consecutive quarters.Image Source: Zacks Investment ResearchOver the past four quarters, META has beaten analyst expectations by a healthy 20.47%.Image Source: Zacks Investment ResearchMeta Platforms: Will the Massive AI Investments Pay off?Meta Platforms is the world’s largest social media platform. The company has evolved from its initial Facebook platform into a diversified social media juggernaut through its bold acquisitions of leading social platforms, including the Instagram photo and video app and the WhatsApp messaging app. At the direction of its iconic CEO and founder, Mark Zuckerberg, Meta Platforms is making its boldest bet yet – AI. Meta is expected to spend ~$70 billion of capital expenditure (CAPEX) this year. By next year, that number is expected to balloon to $100 billion as META continues its aggressive investment spree on AI infrastructure, data centers, and compute. The biggest question ahead of Q3 earnings is whether these AI investments will pay off.Below are three key drivers to watch:·      META Advertising Revenue: Advertising revenue comprises the lion’s share of Meta’s earnings. For that reason, this is the most critical number for investors to watch.·      CAPEX Spend: Meta is likely to continue its CAPEX spending spree. However, investors will want to see that Zuckerberg and his team can communicate that these investments are bearing fruit and are not negatively impacting free cash flow and margins.·      AI Impact on User Engagement: In recent quarters, Meta’s AI integration efforts have improved engagement and revenue across its platforms and particularly with its short-term video offering, ‘Instagram Reels’. Investors will want to see those trends continue.Bottom LineMeta Platforms’ earnings report is a critical event to watch not just for investors but for the market in general. Wednesday’s earnings report should provide clues about how much AI can drive growth.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks