Meta: Strong Quarter, Bright Outlook, But What About The Dividend?

Meta Platforms, Inc. remains a long-term Buy, but near-term dividend growth will be minimal due to elevated capital expenditures and AI investments. Q3 earnings exceeded expectations, with EPS at $7.40 (ex-litigation), revenue at $64.6B, and user engagement at all-time highs. META's CapEx guidance for 2026 was raised to $135–$145B, over 100% higher than last year, pressuring free cash flow and limiting shareholder returns.