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Meta's ad business grows with 10% more impressions and 14% higher ad prices, but capital spending raises concerns.

Company Fundamentals
29 Oct 2026, 01:22 WIB
Seeking Alpha
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Bullish
Meta's ad business grows with 10% more impressions and 14% higher ad prices, but capital spending raises concerns.

Meta Platforms reported a 10% increase in ad impressions and a 14% rise in average ad prices year-over-year, driven by AI improvements boosting app ad conversions and engagement on Reels. Despite rapid growth to 10 million users for Muse, its high compute costs create uncertainty around profitability. Meta's recent $25 billion funding round and convertible financing have raised concerns about dilution, especially with unclear capital expenditure plans through 2027. Overall, the advertising fundamentals remain strong, but investors should watch capital spending closely.

Meta Platforms is trading at USD 618.05 on Pluang as of Oct 29, 2026 05:41 WIB, down slightly by 0.35% for the day. This price sits closer to its 52-week low of USD 525.72 than its high of USD 777.59, highlighting a pullback phase. Despite strong ad metrics reported, the stock's current market cap of $1.61 trillion and a typical hold time of 129 days suggest steady investor interest amid concerns about dilution and capital expenditure plans.

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