Meta: A Strong Quarter Behind A $9.9 Billion Legal Charge And $35 Billion Of Capex

Meta Platforms delivered 26% revenue growth and strong ad pricing, but headline results were impacted by a $9.89B legal charge and elevated capex. META trades at a discount to other large AI spenders, with a forward P/E of ~19.5x, and the core Family of Apps business is even cheaper when Reality Labs losses are excluded. Substantial AI-driven ad revenue gains and early traction for the Muse assistant underpin the investment case, though heavy capex and legal liabilities weigh on free cash flow.