Meta shares just had their worst week in four years. Here's why Mike Khouw is buying now

Earlier this month, Meta Platforms announced controversial new commercial terms of use for business accounts that critics said would give the social media giant broad authority to crawl and scrape web content associated with those accounts.

SAN FRANCISCO--(BUSINESS WIRE)-- #AI--Infinity Hires Meta Superintelligence Labs Chip Veteran and the CUDA Educator Who's Taught Two Million Engineers.

Meta Platforms, Inc. delivered a strong Q3 2026, with 26% YoY revenue growth to $64.60B, beating guidance despite a one-time $9.89B legal charge. Excluding the legal charge, META's operating income rose 11% YoY and EPS would have been $7.40; negative FCF is a timing issue, not structural weakness. Muse adoption is accelerating, with 10M users in 1.5 months; at 1B users, Muse could add $2.97 EPS, a driver not reflected in current valuation.

With results from about a quarter of S&P 500 members already out, we see a continuation of the broad-based strength we've seen in the last few reporting cycles. Most importantly, the revisions trend remains positive, with estimates for 2026 Q4 and full-year 2027 continuing to rise.

Meta plans to hand shareholders one new non-voting Class C share for every Class A and Class B share they hold. Third-quarter revenue grew 26% year over year to $64.6 billion.

Meta Platforms, Inc. delivered a strong Q3, with 26%+ Y/Y revenue growth and robust earnings. META's launch of Muse AI signals a strategic pivot toward agentic AI, workflow optimization, which could help the company diversify its business going forward. High capital spending caused Meta's free cash flow to dip into negative territory in Q3. However, Meta is set to return to positive FCF long-term.

Meta Platforms, Inc.'s Q3 revenue grew 26% YoY, with strong advertising performance and Q4 guidance suggesting further acceleration. AI is already improving advertising monetization, while Muse's early adoption and substantial business opportunities offer significant additional growth potential. However, surging infrastructure expenses are pressuring operating leverage, with adjusted operating income growing just 11% and free cash flow turning negative.