Meta Q3: AI ad growth drives 26% revenue jump

seekingalpha.com —

Meta Platforms reported a 26% year-over-year revenue increase to $64.6 billion in Q3, driven by AI-enhanced advertising, positioning it as a leading mega-cap stock despite heavy AI investment costs. The quarter featured strong ad volume and adjusted earnings per share of $7.40, with generative AI tools like the Muse model suite boosting advertiser returns and user engagement, leading to double-digit ad price growth. Key risks include high capital expenditure intensity and legal liabilities, but the company's operational cash flow and multi-year AI monetization outlook support a buy rating, though analysts note a free cash flow concern.


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