Meta Platforms (META) stock slid late Wednesday after the Facebook parent company reported mixed third-quarter results.
Meta said that it earned $1.05 per share for the September-ended quarter, down 83% from a year earlier and well below the $6.72 that analysts polled by FactSet were forecasting. Sales increased 26% to $51.24 billion, compared to estimates of $49.51 billion.
The earnings miss reflects a one-time tax charge of $15.93 billion, Meta explained in a new release.
“We expect a significant reduction in our U.S. federal cash tax payments for the remainder of 2025 and future years due to the implementation of the One Big Beautiful Bill Act,” the news release said. “However, the implementation also led to the recognition of a valuation allowance against our U.S. federal deferred tax assets, reflecting the impact of the U.S. Corporate Alternative Minimum Tax.”
Stropping out that tax charge, Meta said its earnings would have been $7.25 per share.
Meanwhile, Meta also upped its capital expenditures guidance. The company now expects to spend $71 billion on capex this year, at the midpoint of its range up from previous guidance with a midpoint of $69 billion.
Chief Executive Mark Zuckerberg has committed to spending hundreds of billions on data centers and other computing infrastructure to ensure Meta is a leader in artificial intelligence. The company’s capex grew 37% in 2024 and is on pace to grow 90% in 2025. Meta also said it expects “capital expenditures dollar growth will be notably larger in 2026 than 2025.”
On the stock market today, Meta stock is down 7% at 697.83 in recent after-hours action.
More earnings coverage to come.
Meta Stock Ahead 28% This Year
Meanwhile, Meta stock slipped a fraction in regular trading. That broke an eight day winning streak for Meta stock.
Shares have gained 27.7% this year, as of Wednesday’s close.
The recent action had Meta stock in a newly formed double-bottom base with a buy point at 790.80, according to IBD MarketSurge.
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