Meta's revenue growth and above-consensus Q4 guidance keep its growth case strong. Q3 revenue rose 26.07% to $64.601B versus $63.373B expected, and adjusted EPS of $7.40 beat the $5.74 estimate. Q4 revenue guidance is $73B-$76B; its $74.5B midpoint exceeds Wall Street's $73.736B estimate, signaling continued growth into the final quarter of 2026. Long Meta. x.com  x.com  x.com 

Meta's third-quarter advertising and earnings beats, plus its fourth-quarter revenue outlook, should be viewed favorably by investors. Advertising revenue was $63.1B versus $61.8B expected and EPS was $3.83 versus $3.57; fourth-quarter revenue guidance is $73B-$76B versus $73.6B expected. The lower end of 2026 capex guidance rose to $135B, while the $145B upper end stayed unchanged. x.com 

Meta's AI spending is weakening conversion of strong ad growth into profit and cash, making its valuation one to approach patiently, not chase. Revenue rose 26%, but operating profit excluding a legal settlement rose only about 11%; $34.9B in quarterly capex exceeded $32.8B in operating cash flow. AI has helped ads, though other factors contributed. One negative free-cash-flow quarter is not an operating failure, but depreciation could squeeze margins unless new revenue covers costs. x.com 

Meta's core advertising business is significantly outgrowing its biggest competitors even before factoring in the newer businesses it is building. Q3 ad revenue rose 26% year over year, versus 10.6% at Alphabet and 10.9% at Amazon. Back at 19x forward earnings, Meta is the most undervalued Magnificent Seven stock. x.com  x.com 

Meta's better-than-expected revenue is why it should return to its roughly $800 all-time high. Revenue rose 26.1% year over year to $64.60 billion, above the $63.37 billion analyst estimate; quarterly EPS was $3.83 and net income was $9.86 billion. x.com  x.com 

Meta's expected $700 billion share raise would dilute investors while a non-voting class preserves Zuckerberg's control. With AI bond financing effectively closed, that is how it plans to fund its needs. X's growing ad inventory should lower ad prices enough to pull small advertisers' budgets away from Meta. x.com  x.com  x.com 

Meta's ad pricing and impressions still support its AI monetization case, but heavy spending has pushed free cash flow negative. Impressions rose about 10% and prices 14% as revenue reached $64.6 billion; FCF was negative $2.12 billion and a $9.89 billion state AG charge hit earnings. Scale only on weakness if comfortable with founder control under the planned non-voting Class C shares. Sustained cash burn would weaken the buyback and valuation case. x.com 

Meta's early AI monetization in its core business makes the long-term upside potentially far greater than the short-term pain from its planned $95B capital raise and possible dilution. Its fair value is $1,100, and the shares are worth holding for years despite short-term moves. If Meta monetizes the infrastructure, upside is massive; even if it does not, the assets still have value. x.com 

Meta's cash generation turned negative in Q3, coinciding with the start of its share-price slide. It was Meta's first negative free-cash-flow quarter in more than a decade. A $25 billion share sale priced at $625 this week, and the shares are already below that price. x.com 

Meta's growth and earnings make its valuation appealing. It trades at 17x 2027 estimates with 17% EPS and 22% revenue growth. Its $140 billion EBITDA should make it worth more than Anthropic, which has none, though that comparison could be wrong. If distribution is king, Meta Muse could benefit from Meta's 3.64 billion daily active users, according to GuruFocus News. x.com  x.com  x.com