Meta Platforms reported its third quarter after the close on 21 October, so the $697.52 close used in the updated report was set before investors could react. Early trading pointed higher. The verdict stays at Watchlist, but the reasons behind it have shifted.

Did advertising hold up?

Clearly. Revenue rose 26% to $64.6 billion, above the top of Meta’s own $61-64 billion range. Ad impressions grew 10% and the average price per ad 14%, so growth came from both volume and pricing. The fourth-quarter guide of $73-76 billion points to growth of 22% to 27%. Reported earnings of $3.83 a share include a $9.89 billion charge for the settlement with 52 state attorneys general. Without it, Meta puts earnings at $7.40 a share, and operating income rose about 11% on a year earlier.

So why not upgrade?

Because the build now eats all the cash. Capital spending reached $34.9 billion in the quarter and free cash flow was negative $2.1 billion. There were no buybacks. The full-year capital range moved up to $135-145 billion, which leaves roughly $49-59 billion for the fourth quarter alone. Asked about 2027 spending, management said figures would come in January.

What does the new share class mean?

The board created a non-voting Class C share, to be handed out one for one as a stock dividend. It works like a two-for-one split, with trading expected in late January 2027. On its own it changes nothing about earnings. Its stated purposes include raising capital and paying for acquisitions, although Meta says it has no specific financing plans. A company that funded its AI build from cash and then debt now has a way to use equity as well, without diluting votes.

Is Muse paying off yet?

In usage, yes. More than 10 million people in the US and Canada set up the agent in about six weeks, and about a quarter use it on a given day. Compute, not demand, is the limit. Revenue is still undisclosed, and the report sizes Muse at well under 1% of 2027 earnings in its base case.

Where would the stock get interesting?

Weighted fair value rises to $730.26, about 5% above the pre-results close. That is a thin margin for a company with negative free cash flow and an open-ended 2027 bill. The report names $661-$690 as the range where the case improves, with the 50-day average near the lower edge. A 2027 capital plan with a clear return case, or a first revenue number from Muse, would also move the view.

The scenario table, the Muse sizing and the read of the call are set out in the complete Meta Platforms (META) report on our Reports page.