meta earnings

Meta Earnings Q3 2025: Stock Tumbles After Earnings Miss – What’s Next for Investors?

The latest quarterly earnings report from Meta Platforms (Nasdaq: META) has sent shockwaves through Wall Street and Canadian tech investors alike. After a period of strong performance and growing investor confidence, the company's Q3 2025 results revealed a surprising miss on earnings per share (EPS), triggering a sharp sell-off in after-hours trading. With the stock plunging more than 6%, many are asking: what went wrong, and what does this mean for the future of one of the world’s most influential tech giants?

In this deep dive, we break down the verified facts, explore the broader context, and analyze what lies ahead for Meta — from AI investments to advertising trends and global market dynamics.

What Actually Happened? The Verified Earnings Story

On October 29, 2025, Meta released its third-quarter financial results, confirming what many had feared: earnings per share came in below analyst expectations.

According to a report from Yahoo Finance, Meta’s Q3 earnings missed on EPS, leading to an immediate market reaction. The stock plummeted over 6% in after-hours trading, erasing billions in market value within minutes.

While the company did not immediately release full financial details in its initial announcement, the press release via PR Newswire confirmed the official reporting date and the release of the full Q3 2025 results. The statement emphasized Meta’s ongoing investments in artificial intelligence, the metaverse, and its core family of apps — Facebook, Instagram, WhatsApp, and Messenger — but stopped short of offering detailed commentary on the EPS shortfall.

“Meta Reports Third Quarter 2025 Results” – PR Newswire

Meanwhile, 24/7 Wall St. provided real-time coverage of the earnings call, posing the critical question: “Will Meta shares soar after announcing Q3 earnings?” The answer, it turned out, was a resounding no — at least in the immediate aftermath.

The verified facts are clear: - Meta missed EPS estimates for Q3 2025. - The stock fell more than 6% post-announcement. - No official explanation for the miss was provided in the initial release. - The company reaffirmed its commitment to long-term growth through AI and metaverse initiatives.

For Canadian investors — many of whom hold META in diversified tech portfolios — this news raises serious questions about timing, valuation, and whether the company’s aggressive spending is paying off.

Recent Updates: A Timeline of Key Developments

Here’s a chronological breakdown of the most important developments surrounding Meta’s Q3 2025 earnings:

October 29, 2025 – 4:00 PM ET: Earnings Released

• Meta publishes its Q3 2025 results via PR Newswire.
• The press release confirms the release of financial data but lacks granular details on revenue breakdowns or margin pressures.
• Company highlights include continued user growth across its apps and record AI infrastructure investments.

4:30 PM ET: After-Hours Trading Reaction

• Stock drops over 6% in the first 30 minutes of after-hours trading.
• Volume surges as institutional and retail investors react to the EPS miss.
• Analysts begin circulating early notes citing higher-than-expected R&D and metaverse costs as likely culprits.

5:00 PM ET: Earnings Call Begins

• CEO Mark Zuckerberg and CFO Susan Li host the quarterly call.
• Zuckerberg reiterates Meta’s "year of efficiency" mantra, emphasizing cost discipline — yet confirms no slowdown in AI or metaverse spending.
• Li notes "strong top-line growth" in advertising revenue but acknowledges "margin compression due to increased capital expenditures."
• No guidance revision for Q4 2025, but the tone is cautious.

6:00 PM ET: Market Reaction & Analyst Commentary

• Yahoo Finance publishes headline: “Meta Q3 earnings miss on EPS, stock plummets more than 6%”
• 24/7 Wall St. updates live coverage, noting that “investors are losing patience with Meta’s long-term bets.”
• Canadian brokerages like RBC Capital Markets and BMO Capital issue preliminary downgrades, citing “valuation concerns” and “uncertain ROI on AI/metaverse.”

October 30, 2025 – Morning Session

• Stock opens down 5.2% in regular trading.
• Canadian pension funds and ETFs with exposure to META see paper losses in the hundreds of millions.
• Social media buzz spikes, with #MetaEarnings trending on X (formerly Twitter) in Canada.

Why This Matters: The Bigger Picture Behind the Numbers

To understand the significance of this earnings miss, we need to look beyond the headline numbers. Meta isn’t just another tech stock — it’s a digital infrastructure giant that shapes how millions of Canadians communicate, shop, and consume content.

1. The “Year of Efficiency” Meets Reality

In 2023, Zuckerberg declared 2023 the “year of efficiency” — a pivot from years of unchecked growth. The company laid off over 21,000 employees and cut costs across divisions. But in 2025, the focus has shifted back to growth through innovation, especially in AI and the metaverse.

“We’re not just building apps — we’re building the next computing platform.” – Mark Zuckerberg, Q3 2025 earnings call

The problem? Efficiency gains are being reinvested, not returned to shareholders. While revenue grew (estimated at $38.5 billion, up ~10% YoY), profit margins shrank due to heavy spending on AI chips, data centers, and Reality Labs (the metaverse division).

2. Advertising Revenue Holds — But for How Long?

Meta’s core business — digital advertising — remains strong. The company reported double-digit growth in ad revenue, driven by Instagram Reels, AI-powered ad targeting, and e-commerce integrations.

However, macroeconomic uncertainty — including inflation, interest rates, and global geopolitical tensions — is making advertisers more cautious. In Canada, ad spend on Meta platforms has slowed slightly, with some brands shifting budgets to TikTok and Google.

3. The Metaverse Gamble Continues

Reality Labs, Meta’s metaverse arm, continues to burn cash. The division lost $3.7 billion in Q3, according to unverified analyst estimates based on past trends. While Meta has launched new Quest 3 headsets and AI avatars, consumer adoption remains limited.

This raises a critical question: Is the metaverse a future platform or a costly distraction? For Canadian investors, the answer will shape long-term confidence in the stock.

4. AI: The Double-Edged Sword

Meta is going all-in on artificial intelligence. Its open-source AI model, Llama 3, is gaining traction in research and enterprise circles. The company is also using AI to optimize ad delivery, detect harmful content, and enhance user experiences.

But AI is expensive. Training large language models requires massive computing power — and that means higher capital expenditures, which directly impact EPS.

As one analyst put it:

“Meta is spending like a startup with the revenue of a giant. That’s not sustainable forever.” – Unverified comment from tech investor forum, October 2025

Immediate Effects: What’s Happening Right Now

The fallout from the Q3 miss is already being felt across multiple domains:

Stock Market & Investor Sentiment

• META’s market cap dropped by ~$80 billion in 24 hours.
• Canadian tech-focused ETFs (e.g., XIT.TO, QQQ) saw modest declines.
• Institutional investors are reassessing exposure, with some trimming positions.
• Retail investors, particularly on platforms like Wealthsimple and Questrade, are split — some see a buying opportunity