Meta Platforms reported a disappointing September quarter - and the markets punished the stock with a 20% sell-off in after-hours trading.

To be fair, Meta's sell-off should be placed in context of a very fragile environment, after Google dropped almost 10% on Q3 results.

Meta's social media empire continues to claim strong user growth and engagement.

The Metaverse investments are increasing. But I have previously cheered for 'doubling down on the reality Labs strategy'. So, this is in fact a positive for me.

In my opinion, Meta stock continues to be a 'Strong Buy' and I like to consider the sharp sell-off as a generation buying opportunity. I lower TP to $257.93.

Chip Somodevilla

Our community continues to grow and I'm pleased with the strong engagement we're seeing driven by progress on our discovery engine and products like Reels. While we face near-term challenges on revenue, the fundamentals are there for a return tostronger revenue growth. We're approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.

With these words Mark Zuckerberg opened Meta's Q3 2022, but the market probably did not even read his commentary. Shortly after the report was published the stock immediately lost 13%, and the causes once again were reduced margins and excessive CapEx due to investments in the reality labs segment. By the time this article is published I would not be surprised to see an even more pronounced collapse, but in any case my view on Meta remains bullish. I did not invest in Meta (NASDAQ:META) with the expectation that the reality labs segment would become profitable in a few months, I knew from the beginning that these investments would take years to recover; therefore, I see this short-term volatility as an opportunity to increase my position. Certainly I am aware that Meta is a very risky investment and I could be wrong, but at the same time I know that Mr. Market often has a short memory and may have forgotten that this company in FY2021 recorded a free cash flow of $39.11 

billion.