Quick Read
- Meta Platforms stock fell 0.7% in premarket trading on December 29, 2025, to $663.29.
- Meta’s market cap is about $1.84 trillion, but shares are down 13% over the past three months.
- The company is pivoting from metaverse investments to artificial intelligence, planning up to $72 billion in capital expenditures for 2025.
Meta Platforms, the parent of Facebook, Instagram, WhatsApp, and Messenger, finds itself at a crossroads as 2025 draws to a close. The company’s stock price slipped 0.7% in premarket trading on December 29, settling at $663.29, according to Reuters. This decline comes against the backdrop of a volatile, holiday-shortened trading week when thin liquidity can amplify moves and make large-cap technology stocks especially sensitive to macroeconomic signals.
Meta’s last closing price was $667.66, leaving the stock down $4.37 ahead of regular trading. Its market capitalization hovers near $1.84 trillion, cementing its position as one of the world’s largest publicly traded companies. But the short-term slide is part of a broader trend: Meta shares are down 13% over the past three months and have lagged the S&P 500 for much of the year.
This recent weakness isn’t isolated to Meta. Other tech giants like Nvidia, Oracle, and Tesla also opened lower, as traders awaited fresh cues from the Federal Reserve’s December meeting minutes and weekly jobless claims data. The Fed has cut rates by 75 basis points in its last three meetings, but the most recent quarter-point cut revealed deep divisions among policymakers. With the S&P 500’s tech sector falling over 3% since early November, investors are watching for rotation into less richly valued sectors, a trend highlighted by Reuters.
For Meta, the next major checkpoint is its upcoming earnings report, where investors will seek clarity on the company’s guidance and strategic direction. But beyond short-term swings, there’s a bigger story unfolding—a story about risk, vision, and the relentless pursuit of innovation.
Mark Zuckerberg, Meta’s CEO, has always been willing to spend big to chase big ideas. The company famously changed its name from Facebook to Meta Platforms in 2021, signaling its ambition to build the metaverse. That pivot came at a steep cost: Meta’s Reality Labs division, responsible for virtual and augmented reality, has racked up $73 billion in losses to date. Yet, recent signals from the company suggest a strategic shift away from the metaverse toward artificial intelligence (AI), a move that lifted Meta’s stock by 4% earlier in December, according to Bloomberg.
Meta’s core platforms remain colossal. With over 3.5 billion daily active users, the company commands one of the largest digital audiences on the planet. Now, it’s leveraging that scale to integrate AI across its products. The Meta AI assistant and the Llama large language model promise more personalized content and ads, as well as deeper engagement through generative AI features. The company’s management highlighted in its earnings report that, “We are at an exciting point for our company, where we have continued runway to improve our core services today as well as the opportunity to build new AI-powered experiences and services that will transform how people engage with our products in the future.”
The numbers tell a story of robust growth, albeit with some caveats. Third-quarter revenue reached $51.24 billion, up 26% year-over-year, and advertising revenue surged to $50.08 billion from $39.88 billion a year earlier. However, net income dropped from $15.68 billion to $2.70 billion, largely due to a one-time, non-cash income tax charge of $15.93 billion tied to the newly enacted One Big Beautiful Bill Act. Excluding that charge, Meta’s income would have jumped to $18.64 billion.
Meta’s heavy spending on AI isn’t just about keeping up with competitors—it’s about redefining how people interact with technology. Capital expenditures for 2025 are expected to land between $70 billion and $72 billion, with further increases projected for 2026. Chief Financial Officer Susan Li has emphasized that Meta’s strong free cash flow—$44.8 billion in the trailing third quarter—gives it the firepower to pursue these ambitious bets.
Zuckerberg’s vision for “personal superintelligence” is ambitious: AI companions that help users build relationships, automate work, spark creativity, and achieve personal goals. It’s a future that feels closer than ever as people increasingly use AI to solve everyday problems.
Despite the near-term decline and underperformance relative to the S&P 500, analysts at The Motley Fool argue that Meta stock is trading at a discounted price-to-earnings ratio of less than 30, making it an attractive buy for those willing to look past current market jitters. The company hasn’t flagged any imminent corporate events, but its next earnings report is expected to set the tone for investors heading into 2026.
What does this mean for investors? The answer isn’t simple. Meta’s stock is buffeted by macro factors like Fed rate decisions, year-end portfolio rebalancing, and sector rotation. But underneath those market waves, the company’s fundamental story is about transformation—moving from a social media giant to a leader in AI-powered digital experiences. Whether this bet pays off in 2026 will depend on execution, user adoption, and the broader economic landscape.
Meta’s current dip may unsettle short-term traders, but the company’s aggressive investments in AI and enormous cash reserves position it for a potential rebound. If Zuckerberg’s pivot delivers, Meta could emerge as a defining winner of the next tech cycle, proving that bold vision—and the willingness to spend big—can still reshape the future.