Meta Platforms Stock Opportunity: Revenue Surge Meets Rising Capex Outlook

Meta Platforms’ quarterly results rattled its share price again, but a 28% revenue surge and an upgraded capex outlook have lit up new opportunity signals for investors.

Double‑Boost in Advertising Revenue

Meta’s $60.8 billion total revenue rose 28% YoY, with $59.4 billion coming from advertising. Ad impressions jumped 14% and average ad price rose 12%, driven by the AI‑powered Meta Generative Recommender.

■$59.4 billion ad revenue (+27%)

■14% increase in ad impressions

■12% rise in average ad price

■$75 billion annual recurring revenue from Advantage+

2026 Capex Outlook: Raising the Floor

The firm now projects $130 billion‑$145 billion in 2026 capex, lifting the lower bound of the prior $125 billion‑$145 billion guidance. Declining to give a 2027 forecast suggests spending could climb further over the next two years.

■2026 capex: $130 billion‑$145 billion

■Prior range: $125 billion‑$145 billion

■Reality Labs loss: $4.6 billion (vs $4.5 billion prior)

Share Price Reaction and Valuation Gap

After earnings, NASDAQ: META shares slipped, while adjusted EPS of $7.35 beat forecasts, but reported EPS fell to $6.18 due to $2.4 billion legal costs and $1.2 billion severance charges. This highlights a disconnect between market price and underlying fundamentals.

■Reported EPS: $6.18 (‑13%)

■Adjusted EPS: $7.35 (+7%)

■Legal expenses: $2.4 billion

■Severance costs: $1.2 billion

Markets may view Meta Platforms’ hefty capex as a short‑term risk, yet the durable growth in ad revenue and AI‑driven monetisation present an attractive entry point for long‑term investors. Against the backdrop of ECB rate policy and global trade tensions, the firm’s profit margins and FX exposure merit close monitoring.