Meta Shares Fall After Tax Charge, Capex Hike

Meta reported Q3 revenue of about $51.2–51.4 billion, a 26% year-over-year increase driven by roughly $50.1 billion in ad revenue and 3.54 billion daily active users; adjusted EPS of $7.25 beat estimates. GAAP EPS fell to $1.05 after a roughly $15.9 billion one-time, non‑cash tax charge tied to provisions of President Trump’s “One Big Beautiful Bill” (which would have left quarterly net income near $18.6 billion absent the charge). Shares plunged about 8–10% in after‑hours trading as investors reacted to the tax hit and Meta’s warning of substantially higher costs. Management raised 2025 capex guidance to $70–72 billion and said expenses will rise “at a significantly faster percentage rate in 2026,” citing data centers, cloud costs, depreciation and higher compensation for AI talent. Executives said AI is already improving ad relevance and engagement, but investors remain concerned about the timeline and scale of returns beyond ads.