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Watch These ETFs to Tap Meta's 11% Slump Post Q3 Earnings Beat
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Shares of Meta Platforms ((META - Free Report) ) slumped 11.3% at the bourses yesterday, following the company’s better-than-expected third-quarter 2025 results release. The Facebook-owning company also topped $50 billion in revenues for the first time.
However, the huge one-time tax charge of $15.93 billion that Meta incurred in the reported quarter, as a result of the United States’ One Big Beautiful Bill Act, appears to have dragged down its share price. The increase in its anticipated 2025 capital expenditure may have also dampened investor optimism toward the stock, leading to its recent slump.
While this slump may disappoint its investors, it could be short-lived considering the company’s upbeat guidance for this year’s last quarter. In fact, investors interested in this stock might view the current dip as a golden opportunity to buy in and potentially profit later.
However, direct investment in META stock carries the specific risks of large, unforeseen corporate expenses, such as the major tax charge, and changes in capital expenditure, which can cause sudden, sharp drops in value. So, for investors looking to capitalize on this dip without being exposed to the unique regulatory and single-stock volatility that hit Meta, a more prudent strategy could be to consider exchange-traded funds (ETFs) with significant Meta exposure. This approach allows investors to capture potential upside while mitigating company-specific risks that could severely impact profits during times of unprecedented crisis.
But before diving straight into these ETFs, let us check Meta’s overall performance in the third quarter, in terms of other metrics.
A Brief Analysis of META’s Q3 Results
META’s adjusted earnings of $7.25 per share comfortably surpassed the Zacks Consensus Estimate of $6.61, while revenues of $51.24 billion beat the consensus mark by 3.6%. Revenues improved 26.2% year over year.
On a geographic basis, revenues increased across all regions, with the Asia-Pacific region recording the highest growth at 27.2%. Segment-wise, META’s advertising revenues surged 25.6% year over year, while revenues from Reality Labs soared 74.1%.
Across its Facebook, Instagram, and Threads platforms, META’s AI recommendation systems, delivering higher quality and more relevant content, led to 5% more time spent on Facebook and 10% on Threads in the third quarter. On the other hand, with increasing views of videos across its apps, Reels now has an annual run rate of more than $50 billion.
The company generated cash from operating activities worth $79.6 billion during the first nine months of 2025, reflecting a year-over-year improvement of 25.6%.
Looking ahead, the company expects to generate continued strong ad revenue growth as well as expansion in AI glasses revenues, but lower Reality Labs revenues in the fourth quarter of 2025. META raised its 2025 capital expenditures plan from the prior range of $66-$72 billion to $70-$72 billion.
META also remains cautious about active legal and regulatory matters, including the increasing headwinds in the European Union (EU) and the United States, that might significantly impact its business and financial results. For instance, in the United States, a number of youth-related trials are scheduled for 2026, and may ultimately result in a material loss for the company.
On a bright note, META anticipates realizing substantial cash tax savings through the remainder of 2025 and in the subsequent years under the new U.S. tax law.
This fund, with net assets worth $855.7 million, offers exposure to 69 companies that provide media, entertainment, social media, search engine, video/gaming and telecommunication services. Of these, META carries the first spot, holding 21.87% of the fund.
IXP has surged 27.9% year to date. The fund charges 40 basis points (bps) as fees. Its volume is at an average of 22,684 shares a day.
Global X PureCap MSCI Communication Services ETF ((GXPC - Free Report) )
This fund, with net assets worth $32.95 million, offers exposure to 24 U.S. companies in the communication services sector. Of these, META carries the second spot, holding 23.81% of the fund.
GXPC has gained 13.9% year to date. The fund charges 15 bps as fees.
Vanguard Communication Services ETF ((VOX - Free Report) )
This fund, with net assets worth $5.8 billion, offers exposure to 121 U.S. companies within the communication services sector. Of these, META carries the first spot, holding 20.02% of the fund.
VOX has soared 21% year to date. The fund charges 9 bps as fees. Its volume is good at an average of 222,945 shares a day.
This fund, with assets under management (AUM) worth $26.43 billion, offers exposure to 24 companies from the telecommunication services, media, entertainment and interactive media & services industries. Of these, META carries the first spot, holding 13.81% of the fund.
XLC has gained 19.1% year to date. The fund charges 8 bps as fees. It traded at a volume of 3.2 million yesterday.
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Watch These ETFs to Tap Meta's 11% Slump Post Q3 Earnings Beat
Shares of Meta Platforms ((META - Free Report) ) slumped 11.3% at the bourses yesterday, following the company’s better-than-expected third-quarter 2025 results release. The Facebook-owning company also topped $50 billion in revenues for the first time.
However, the huge one-time tax charge of $15.93 billion that Meta incurred in the reported quarter, as a result of the United States’ One Big Beautiful Bill Act, appears to have dragged down its share price. The increase in its anticipated 2025 capital expenditure may have also dampened investor optimism toward the stock, leading to its recent slump.
While this slump may disappoint its investors, it could be short-lived considering the company’s upbeat guidance for this year’s last quarter. In fact, investors interested in this stock might view the current dip as a golden opportunity to buy in and potentially profit later.
However, direct investment in META stock carries the specific risks of large, unforeseen corporate expenses, such as the major tax charge, and changes in capital expenditure, which can cause sudden, sharp drops in value. So, for investors looking to capitalize on this dip without being exposed to the unique regulatory and single-stock volatility that hit Meta, a more prudent strategy could be to consider exchange-traded funds (ETFs) with significant Meta exposure. This approach allows investors to capture potential upside while mitigating company-specific risks that could severely impact profits during times of unprecedented crisis.
But before diving straight into these ETFs, let us check Meta’s overall performance in the third quarter, in terms of other metrics.
A Brief Analysis of META’s Q3 Results
META’s adjusted earnings of $7.25 per share comfortably surpassed the Zacks Consensus Estimate of $6.61, while revenues of $51.24 billion beat the consensus mark by 3.6%. Revenues improved 26.2% year over year.
On a geographic basis, revenues increased across all regions, with the Asia-Pacific region recording the highest growth at 27.2%. Segment-wise, META’s advertising revenues surged 25.6% year over year, while revenues from Reality Labs soared 74.1%.
Across its Facebook, Instagram, and Threads platforms, META’s AI recommendation systems, delivering higher quality and more relevant content, led to 5% more time spent on Facebook and 10% on Threads in the third quarter. On the other hand, with increasing views of videos across its apps, Reels now has an annual run rate of more than $50 billion.
The company generated cash from operating activities worth $79.6 billion during the first nine months of 2025, reflecting a year-over-year improvement of 25.6%.
Looking ahead, the company expects to generate continued strong ad revenue growth as well as expansion in AI glasses revenues, but lower Reality Labs revenues in the fourth quarter of 2025. META raised its 2025 capital expenditures plan from the prior range of $66-$72 billion to $70-$72 billion.
META also remains cautious about active legal and regulatory matters, including the increasing headwinds in the European Union (EU) and the United States, that might significantly impact its business and financial results. For instance, in the United States, a number of youth-related trials are scheduled for 2026, and may ultimately result in a material loss for the company.
On a bright note, META anticipates realizing substantial cash tax savings through the remainder of 2025 and in the subsequent years under the new U.S. tax law.
META-Heavy ETFs to Watch
iShares Global Comm Services ETF ((IXP - Free Report) )
This fund, with net assets worth $855.7 million, offers exposure to 69 companies that provide media, entertainment, social media, search engine, video/gaming and telecommunication services. Of these, META carries the first spot, holding 21.87% of the fund.
IXP has surged 27.9% year to date. The fund charges 40 basis points (bps) as fees. Its volume is at an average of 22,684 shares a day.
Global X PureCap MSCI Communication Services ETF ((GXPC - Free Report) )
This fund, with net assets worth $32.95 million, offers exposure to 24 U.S. companies in the communication services sector. Of these, META carries the second spot, holding 23.81% of the fund.
GXPC has gained 13.9% year to date. The fund charges 15 bps as fees.
Vanguard Communication Services ETF ((VOX - Free Report) )
This fund, with net assets worth $5.8 billion, offers exposure to 121 U.S. companies within the communication services sector. Of these, META carries the first spot, holding 20.02% of the fund.
VOX has soared 21% year to date. The fund charges 9 bps as fees. Its volume is good at an average of 222,945 shares a day.
Communication Services Select Sector SPDR ETF ((XLC - Free Report) )
This fund, with assets under management (AUM) worth $26.43 billion, offers exposure to 24 companies from the telecommunication services, media, entertainment and interactive media & services industries. Of these, META carries the first spot, holding 13.81% of the fund.
XLC has gained 19.1% year to date. The fund charges 8 bps as fees. It traded at a volume of 3.2 million yesterday.