META’s Stock Down from Highs Ahead of Earnings – What To Expect

Meta Platforms Inc. (NASDAQ: META) gears up to release its third-quarter 2025 earnings today, in what is poised to be a busy day for markets. The social media giant, currently trading at $753 in pre-market hours, is navigating a complex landscape of aggressive AI investments, strategic operational adjustments, and evolving market sentiment. The question on everyone’s mind: can Meta deliver another quarter of impressive growth?

Analysts are projecting a strong Q3, with the consensus estimate forecasting revenues of $49.43 billion, a substantial 21.8% increase year-over-year. Earnings per share (EPS) are expected to reach $6.60, a 9.5% jump from the same quarter last year.

Wedbush analysts are even more bullish, having slightly raised their EPS forecast to $6.72 and maintaining an “Outperform” rating with a price target of $920.00. These optimistic projections are fueled by Meta's recent successes, particularly its impressive Q2 2025 performance.

In the second quarter, Meta reported revenues of $47.52 billion, a 22% year-over-year increase, and an EPS of $7.14, significantly exceeding analyst expectations of $5.88. The surge was largely attributed to a 21% increase in advertising revenue, totaling $46.56 billion. The company's operating margin also saw a healthy improvement, rising to 43% from 38% in the previous year. This performance has led many to believe that Meta has successfully navigated the challenges of a changing digital landscape.

A significant driver of Meta's recent success is its aggressive investment in artificial intelligence (AI). The company has been pouring billions into AI research and development, aiming to enhance its advertising capabilities, improve user engagement, and develop new products and services. A notable example is the multi-billion-dollar investment in AI startup Scale AI, potentially exceeding $10 billion. These investments are seen as crucial for Meta to maintain its competitive edge in the rapidly evolving tech industry.

However, Meta's AI strategy has not been without its challenges. In October 2025, the company announced layoffs of approximately 600 employees from its AI division, citing the need to streamline operations and improve efficiency. This decision has raised some concerns about the company's ability to effectively manage its AI initiatives and may signal a shift in strategy.

Meta's stock has given bulls plenty to cheer in recent years, with this year's 25.4% in gains a slight outperformance on the 24% gain in the Nasdaq 100. Whilst the NDX has ploughed on to fresh highs however in recent days, META has pulled back more than 10% from it's own respective peak, as bulls take a breath into the print.

Ultimately, Meta's Q3 2025 earnings report will provide critical insights into the company's financial health and strategic direction. .The market's reaction will depend not only on the numbers but also on Meta's ability to articulate a clear and compelling vision for the future.