10:52 AM EDT, 10/30/2025 (MT Newswires) -- Meta Platforms' ( META ) increased spending has once again stirred short-term investor skepticism but will ultimately benefit the company's long-term equity value, Deutsche Bank said in a Thursday note.

The bank said Meta's acceleration of investment in AI and infrastructure will likely result in capital expenditures being much higher in the near-to-medium term.

Meta's stock fell more than 8% in after-hours trading following its Q3 results, reflecting investor concerns over rising costs.

This round of spending is "slightly different" from prior investment cycles, the analysts said, as the company is now building infrastructure that should support its current advertising model, rather than causing near-term cannibalization of better-monetizing platforms.

Deutsche Bank said Meta remains the fastest-growing advertising platform at scale, and that after the stock's pullback, its "reasonable valuation" makes it a prudent time to invest as the company expands its generative AI ambitions.

Deutsche Bank has a buy rating on the company's stock with a price target of $880.

Shares of Meta Platforms ( META ) were down more than 12% in recent trading.

Price: 658.59, Change: -93.08, Percent Change: -12.38