Should I invest in Meta Platforms?
Before investing in Facebook's parent company's stock, you need to determine whether Meta Platforms shares are a good investment. Here are some factors to consider before investing in Meta stock.
Profitability
Meta Platforms is an immensely profitable company. The social media giant reported $37.7 billion in net income in Q3 of 2025. That was up roughly 64% from the previous year in the same time frame, as Meta focused on increasing revenue and keeping a lid on costs to improve profitability.
The company behind Facebook is also free cash flow-positive. Meta generated $29.5 billion in free cash flow by Q3 of 2025 after funding $50 billion in capital expenses. That enabled the technology giant to return cash to investors by repurchasing shares ($3.16 billion) and paying dividends ($1.33 billion) while maintaining a cash-rich balance sheet ($44.45 billion as of September 30, 2025, in cash, equivalents, and marketable securities against $28.8 billion of long-term debt).
Meta is using its strong cash flow to invest heavily in AI. The company planned to boost its capital spending to the tune of $600 billion in 2026 on things like data center projects and other investments in generative AI, and to expand its core business.
Meta Platforms' valuation
Here's a snapshot of Meta Platform's valuation:
