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Meta's 10% stock drop post-Q3 is overdone; strong AI-driven ad growth and stable costs support a Strong Buy rating.

Company Fundamentals
25 Oct 2026
Seeking Alpha
View Source
Bullish
Meta's 10% stock drop post-Q3 is overdone; strong AI-driven ad growth and stable costs support a Strong Buy rating.

Meta Platforms saw its stock drop 10% after Q3 earnings, mainly due to a large $9.89 billion litigation charge and a broad AI sector selloff. Despite a 37% year-over-year operating income decline, this was largely from one-time expenses, and the company expects no additional cost pressures in Q4 FY2026. Meta's advertising revenue remains strong, boosted by AI monetization, with rapid user growth in its Muse product requiring more computing power next year. Trading at 21x forward P/E, slightly below its 5-year average, Meta is considered a solid Strong Buy based on its growth prospects and AI investments.

As of Oct 26, 2026 02:21 WIB, Meta Platforms shares trade at USD 642.62 on Pluang, down 0.96% in the past day. The stock's market cap stands at $1.64 trillion, with a typical holding period of 128 days among Pluang investors. This reflects steady investor interest despite recent earnings volatility.

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