Meta's Strong Earnings Highlight AI Potential

Meta Platforms, the parent company of Facebook, rebounded back to its 50-day line after reporting earnings that exceeded Wall Street's expectations and showcased progress in artificial intelligence. Despite a 3.7% drop in stock value following the earnings report, Meta's Relative Strength score remains high, indicating outperformance compared to the S&P 500. The company's Q3 earnings showed a 168% increase year-over-year, with a 23% sales growth, driven by the success of its automated ad campaign tools and cost-cutting measures. However, Meta cautioned about potential impacts on ad sales due to the Israel-Hamas conflict and provided a Q4 revenue outlook that fell short of analyst expectations. Additionally, Meta announced plans to offer ad-free subscription options in Europe to comply with evolving regulations.