Meta Platforms Inc (NASDAQ:META) stock plunges 11.61% (As on October 30, 11:37:30 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY25. However, the stock fell after it took a one-time, non-cash income tax charge of up to $16 billion due to US President Donald Trump’s implementation of the One Big Beautiful Bill Act. It also added that the law will result in “a significant reduction” in its cash tax payments for the rest of 2025 and future years. Another aspect the street may not have liked is the increased capex guidance. Meta raised the lower end of that range to $70 billion from $66 billion earlier. It now expects to spend between $70 billion to $72 billion from $66 billion to $72 billion earlier. It also raised the lower end of its expenses guidance to $116 billion from $114 billion earlier.

Moreover, Meta’s Reality Labs hardware unit reported a loss of $4.4 billion during the third quarter, on just $470 million in sales. CFO Susan Li said on the earnings call that revenue for the Reality Labs in Q4 will also be lower compared to the same quarter last year. Advertising sales, which form a bulk of Meta’s revenue surpassed analyst expectations with a $50.08 billion figure, compared to $48.5 billion estimates. Meta now has 3.54 billion daily active users across its apps, also higher than the 3.5 billion estimate. Meta also recently signed a JV with Blue Owl Capital in a $27 billion deal to help fund and build a large data center in Louisiana. Ad impressions delivered across the Family of Apps increased by 14% year-over-year. Average price per ad increased by 10% year-over-year. Capital expenditures, including principal payments on finance leases, were $19.37 billion. Cash, cash equivalents, and marketable securities were $44.45 billion as of September 30, 2025. Cash flow from operating activities was $30.0 billion and free cash flow was $10.62 billion.

META in the third quarter of FY25 has reported the adjusted earnings per share of $7.25, beating the analysts’ estimates for the adjusted earnings per share of $6.72. The company had reported the adjusted revenue growth of 26 percent to $51.24 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $49.41 billion.

For the fourth quarter, Meta expects revenue to range between $56 billion to $59 billion. Analysts are forecasting $57.36 billion for the October-December quarter.