"Meta Platforms currently trades at a 29.8 P/E ratio while offering strong financial growth. The tech giant delivered 26% year-over-year revenue growth in the third quarter, and while net income was down year-over-year, the company has committed to trimming its Realty Lab expenses. The segment has burned through $71 billion of Meta Platforms' profits since 2021."
"Meta Platforms' net income decline is actually a one-off issue due to some tax policy changes. Facebook's parent company ended up paying $18.95 billion in taxes this quarter compared to $2.13 billion in the same time last year. Its total tax bill increased by 788% year-over-year, which significantly contributed to its declining net income. If you get rid of this one-off tax event and focus on Meta Platforms' income from operations, you will see an 18% year-over-year growth rate."
Meta Platforms has underperformed the S&P 500 this year but is expected to rebound strongly in 2026. The company trades at a 29.8 P/E and posted 26% year-over-year revenue growth in Q3. Net income fell due to a one-off tax increase that raised this quarter's tax bill to $18.95 billion from $2.13 billion a year earlier, a 788% rise, while operating income grew about 18% year-over-year excluding the tax event. Reality Labs has consumed roughly $71 billion since 2021, prompting cost cuts. Forward P/E is 24.6. Investments in AI and smart glasses aim to diversify revenue beyond advertising.
Read at 24/7 Wall St.
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