Investors are turning their attention to META stock after Michael Burry, famous for his Big Short bet, accused Meta Platforms (NASDAQ:META) of inflating earnings. Burry claims the company extends the useful life of Nvidia (NASDAQ:NVDA) chips from two-to-three years to five-to-six years, lowering depreciation costs and boosting profits artificially. While this raises eyebrows, many experts note that older chip generations like Hopper and Ampere remain valuable for AI applications and professional workflows, suggesting the alleged accounting discrepancy may not be as damaging as Burry implies.
Meta’s AI Investments Under Pressure
Beyond accounting concerns, Meta faces internal challenges. The company recently increased its capital expenditure guidance for 2025 from $60–65 billion to $70–72 billion, raising investor caution. In addition, Meta’s Chief AI Scientist, Yann LeCun, reportedly plans to leave and start his own venture. LeCun, a 2018 Turing Award recipient, has been central to Meta’s AI research, particularly in deep learning and convolutional neural networks. His departure could impact Meta’s Superintelligence Labs division, now led by Chief AI Officer Alexander Wang.
META Stock Remains Resilient
Despite these headwinds, META stock continues to operate from a position of strength. Its platforms, including Instagram, WhatsApp, and Facebook, reach nearly half the global population. Revenue and earnings have grown at CAGRs of 28.09% and 35.39%, respectively, driven largely by advertising. Even after a one-time non-cash tax charge of $15.93 billion, Q3 2025 revenue came in at $51.2 billion, reflecting 26% YoY growth. Operational metrics also showed improvements, with daily active users reaching 3.54 billion (up 8% YoY), a 14% increase in ad impressions, and a 10% rise in average ad pricing.
Financial Strength Supports Growth
Meta’s cash flow position further bolsters confidence in META stock. The company generated $30 billion in net cash from operating activities in Q3 2025, up from $24.7 billion a year earlier, and ended the quarter with $10.2 billion in cash against $2.1 billion in short-term debt. This strong balance sheet provides flexibility to invest in AI, refine content curation, and enhance the Family of Apps ecosystem, driving user engagement and monetization.
Analyst Ratings and Outlook
Analysts remain optimistic about META stock. Of 57 analysts covering the stock, 45 rate it a “Strong Buy,” three “Moderate Buy,” eight “Hold,” and one “Strong Sell.” The average target price is $843.94, suggesting roughly 35% upside from current levels. Meta’s continued investment in AI, advertising efficiency, and robust cash flow underpins its strong rating, despite concerns over leadership changes and earnings scrutiny.
Should You Buy META Stock?
While Michael Burry’s allegations and leadership departures present short-term risks, Meta’s dominant market position, diversified revenue streams, and strong financials provide a solid foundation. For long-term investors, META stock offers potential growth, driven by AI adoption, platform ubiquity, and a disciplined approach to advertising and user engagement. Cautious investors may monitor developments in AI leadership and capital spending, but the overall outlook remains positive.
Investors considering META stock should also weigh the company’s AI strategy against competitors. Nvidia (NASDAQ:NVDA), a key chip supplier, continues to dominate the AI hardware market, while Oracle (NASDAQ:ORCL) leverages cloud infrastructure for enterprise AI solutions. Meta, however, differentiates itself through its integrated ecosystem, combining social media platforms with AI-powered content moderation, recommendation algorithms, and ad targeting. This allows the company to monetize user engagement more efficiently than peers. Moreover, Meta’s investments in AI research, including generative AI and personalization tools, aim to enhance platform stickiness and advertising effectiveness. While leadership changes like Yann LeCun’s potential departure introduce uncertainty, the company’s scale, financial strength, and AI roadmap provide a durable competitive advantage. Long-term investors may view these factors as a compelling reason to maintain or increase positions in META stock.
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Author Stephanie Bédard-Châteauneuf 
