• Meta Platforms (NASDAQ: META) reported robust Q3 revenue of $64.6 billion, surpassing Wall Street expectations.
  • Despite strong sales, the company faces investor scrutiny due to increased capital spending on AI infrastructure, with its 2026 forecast raised to between $135 billion and $145 billion.
  • Wells Fargo maintained an "Overweight" rating but adjusted its price target for Meta stock from $1,000 to $995, reflecting a cautious outlook amidst significant AI investments.

Meta Platforms (NASDAQ: META) is the parent company of Facebook and earns nearly all its revenue from advertising. Wells Fargo maintains an Overweight rating on the stock, meaning it expects Meta to perform better than the broader market. The bank lowers its price target to $995 from $1,000. Meta trades at $697.52 when the update is posted.

The rating update comes as investors weigh strong sales against rising AI costs. Meta reports third-quarter revenue of $64.6 billion, up 26% and above Wall Street’s expectation of about $63.4 billion. Shares rise in after-hours trading, then fall more than 1% in Thursday premarket trading as investors focus on spending, as highlighted by Invezz.

Meta raises the lower end of its 2026 capital spending forecast to $135 billion from $130 billion and keeps the upper end at $145 billion. Capital spending covers long-term assets such as the chips and data centers Meta needs for AI. Higher spending can reduce cash available for other uses, even when revenue is growing.

Meta reports earnings per share of $3.83 after a $9.89 billion charge related to an $18.59 billion settlement over litigation concerning teen health and social media. The charge lowers the reported figure; the provided information does not give an adjusted earnings-per-share figure.

Meta also says its AI personal agent, Muse, has reached 10 million users in North America. The company sees it as a possible new source of revenue alongside advertising and believes it could potentially double U.S. revenue. That opportunity remains a company projection, while the planned infrastructure spending is part of its current forecast.