Why Meta Platforms Stock Fell 12% in October

Share prices of Meta Platforms (NASDAQ: META) were heading lower last month as the stock tumbled following its third-quarter earnings report at the end of the month. Investors seemed to balk at the company's plans to notably raise capital expenditures next year, sparking some concerns that it was getting too aggressive and adding too much risk. Additionally, Meta's generally accepted accounting principles (GAAP) profit was much lower than expected due to a one-time, non-cash expense associated with the change in value of a deferred tax asset as the company expects to pay a lower tax rate following the passage of the "big, beautiful bill."Prior to the report, Meta overcame an initial sell-off earlier in October, and the stock was trading higher for the month. According to data from S&P Global Market Intelligence, the stock finished the month down 12%.As you can see from the chart below, Meta plunged sharply after the Oct. 29 report.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool