META’s Big Earnings Beat Overshadowed by Soaring AI Spending

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks in the Spotlight This Week. On October 30, TD Cowen lowered its price target on the stock to $810 from $875 while maintaining a Buy rating.

The price target adjustment follows Meta’s Q3 results, where the tech giant reported revenue and operating income exceeding consensus estimates by 4% and 5% respectively.

Despite this robust Q3 beat and upbeat Q4 outlook, the company’s rising AI capex/opex has tempered near-term margin view. TD Cowen noted how Meta has raised both its 2025 capital expenditure and operating expense guidance.

“Strong 3Q Results Overshadowed By Ramping AI Infrastructure Spend; META 3Q rev & Op Inc. were +4% & +5% vs cons ests on strong pricing & volume growth. 4Q rev guide was 3% above cons est (high end) amid AI-driven gains to engagement & monetization engines. Mgmt. raised ’25 capex & opex guides, and now expects accel’ing ’26 opex growth & higher y/y dollar capex growth amid ramping compute. We raised opex & capex outlook; PT to $810, maintain Buy, shares (6%) AH.”

Meta Platforms has been expanding its advertising capabilities and also invests heavily in artificial intelligence and the metaverse.

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