Is META a good stock to buy? We have come across a bullish thesis for Meta Platforms, Inc. of gathering Substack for Your Wealth by Sergey. In this article, we will summarize the bulls thesis in META. Share of Meta Platforms, Inc. we were $627.45 as of March 16th. META’s trailing and forward IP/E were 26.71 and 21.01 respectively according to Yahoo Finance.
Meta Platforms, Inc. participates in the development of products that enable people to communicate and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses in the United States and internationally. META reported strong results for Q3 2025, with revenue reaching $51.2 billion, up 26% year-on-year, driven almost entirely by advertising.
Ad impressions increased by 14% while average cost per ad increased by 10%, supported by higher engagement and improved video monetization. Operating income reached $20.5 billion, representing a margin of 40%, although net income decreased to $2.7 billion due to a one-time deferred tax write-down; adjusted income excluding this item would have been $18.6 billion.
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Despite strong top-line performance, expenses rose 32% to $30.7 billion, outpacing revenue growth due to AI-related employment, legal costs, and infrastructure expansion, while capital expenditures rose to $19.4 billion, leading to full-year guidance of $70-72 billion, with continued increases expected in 2026’s surrese rate of $5 billion for the Meta platform. and automated ad solutions exceeded $60 billion, solidifying the company’s dominant position in digital marketing. Key challenges include increased computing power, ongoing losses at Reality Labs, and regulatory risks in the EU and US, which could impact margins if not mitigated.
The company’s future performance depends on successfully converting AI investments into marketing success without depleting profitability. Although rising costs present near-term pressures, Meta’s scale, product monetization, and strong advertising ecosystem provide a solid foundation, providing a clear path to growth supported by technology investments and expanding revenue streams, especially in Reels and automation, which together underline the company’s strategic position in the digital ad market with the potential to deliver its long-term digital ad value.
Previously, we included a bullish thesis to Meta Platforms, Inc. (META) by LongYield in May 2025, which highlighted the company’s strong Q1 performance, AI-driven ad growth, and strategic investments in Reality Labs and AI wearables. META’s stock price is down about 9.65% since our coverage. Sergey has a similar opinion but emphasizes the results of Q3 2025, the increase in costs, and capital expenditures, while reinforcing Meta’s leading position in digital marketing and the growth potential of Reels and automated ad solutions.
