Meta Platforms, Inc. (META): A Bull Case Theory

We came across a bullish thesis on Meta Platforms, Inc. on Beeli Capital’s Substack by Andrew Beeli. In this article, we will summarize the bulls’ thesis on META. Meta Platforms, Inc.'s share was trading at $647.10 as of December 2nd. META’s trailing and forward P/E were 28.67  and 22.17 respectively according to Yahoo Finance.

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices. META reported a blockbuster Q3 with revenue of $51.2 billion, exceeding estimates of $49.6 billion and marking a 26% year-over-year increase—the fastest growth since 2021 outside the pandemic-driven boom.

The company added $10.7 billion in revenue year-over-year, an extraordinary scale of growth. Operating income rose 18% to $20.5 billion, while earnings per share fell sharply to $1.05 due to a $16 billion one-time tax charge, though adjusted EPS would have been $7.25, above estimates.

Despite these strong fundamentals, META’s market cap declined over $200 billion, largely due to investor concerns around Reality Labs, legal and regulatory risks, and rising capital expenditures. Reality Labs, which continues to generate losses of approximately $4 billion per quarter, remains a focal point, though recent developments in Meta Ray-Ban smart glasses and wristbands show promise, and the segment’s losses are expected to decline as capital is redirected to AI data centers.

Regulatory pressures, particularly in the EU and potential youth-related U.S. trials, represent uncertainties but are unlikely to materially impair the company’s core advertising business, which maintains industry-leading ARPU and strong ad engagement.

Concerns about higher CapEx and lower margins contributed to the sell-off, though META benefits from significant economies of scale in AI infrastructure, offering high returns on compute investments that can be redeployed if needed. Even with a $25 billion bond issuance to fund capital growth, the company’s cash flows and asset base support this strategy.

Overall, META remains a compelling investment with multiple upside scenarios, including disciplined R&D management or a focus on the core Family of Apps, while aggressive investments in AI and Reality Labs could further strengthen long-term growth, positioning the stock for significant upside despite near-term volatility.

Previously we covered a bullish thesis on Meta Platforms, Inc. (META) by LongYield in May 2025, which highlighted strong Q1 revenue growth, AI-driven advertising, and long-term investments in Reality Labs. The company's stock price has appreciated approximately 13.08% since our coverage. The thesis still stands as META maintains high margins and robust ad engagement. Andrew Beeli shares a similar perspective but emphasizes Q3 results, Reality Labs losses, and rising CapEx.

Meta Platforms, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 260 hedge fund portfolios held META at the end of the second quarter which was 273 in the previous quarter. While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.