Meta’s (META) AI Push Drives Up Spending Despite Strong Q3 Results

Meta Platforms Inc. (NASDAQ:META) is one of the best stocks to invest in, according to billionaire D.E. Shaw. On October 30, Meta Platforms Inc. (NASDAQ:META) posted solid third-quarter 2025 earnings, reporting $7.25 per share on $51.24 billion in revenue—a 26% increase from the previous year.

Meta’s (META) AI Push Drives Up Spending Despite Strong Q3 Results

The results beat analyst expectations, though a $15.93 billion tax charge tied to new legislation weighed on the bottom line. Despite the strong performance, investor attention shifted to Meta’s revised capital expenditure forecast, now set between $70 billion and $72 billion for 2025, up from earlier estimates.

CEO Mark Zuckerberg defended the aggressive spending, citing early returns and the need to stay ahead in the AI race. Meta has invested heavily in infrastructure and talent, including a $14.3 billion stake in Scale AI and the launch of Superintelligence Labs.

Meta Platforms Inc. (NASDAQ:META) is a technology company that develops social media platforms and virtual reality technologies. It owns popular services such as Facebook, Instagram, WhatsApp, and Messenger, and also produces products such as Meta Quest VR headsets and Ray-Ban Meta AI glasses.

While we acknowledge the potential of META to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 8 Long-Term Biotechnology Stocks to Buy and Top 9 Credit Services Stocks to Buy as the US Cuts Interest Rates.

Disclosure: None. This article is originally published at Insider Monkey.