Meta Platforms Stock Falls Despite Posting Strong Q3 Numbers. Should Investors Buy the Dip?

Meta reported strong Q3 earnings with 26% revenue growth and beat guidance expectations, but the stock has declined since results. Heavy AI spending caused free cash flow to turn negative at -$2.1 billion versus +$10.6 billion a year ago, with capex doubling to $34.9 billion. While the company trades at a modest 18x forward P/E ratio, analyst sentiment remains cautious due to legal settlement costs and uncertainty around AI investment returns.