Meta's AI spending, Muse assistant adoption in focus for quarterly results
Oct 20 : Meta's massive artificial intelligence outlays and adoption of its Muse personal assistant will be in focus when it reports third-quarter results on Wednesday, as the social media firm seeks to show that its AI investments can sustain growth.
- "Recent AI launches have strengthened confidence in the company's AI execution," BofA Global Research analysts said, adding that its survey also suggests healthy ad demand in the quarter
CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less • Analysts estimate Meta's capital expenditure more than doubled to $41.68 billion in the September quarter, according to Visible Alpha data • The rising spending had squeezed its free cash flow in the second quarter and analysts expect it to report a cash burn of $8.52 billion in the third quarter • Morgan Stanley analysts raised their earnings estimates for 2027 and 2028 for Meta despite higher spending, citing stronger ad growth and the potential for new AI products to generate additional revenue • Wall Street expects Meta to report a decline of about 17 per cent in net income to $15.44 billion, according to data compiled by LSEG • Meta is set to report revenue growth of 23.8 per cent to $63.42 billion, slowing from about 28 per cent in the previous quarter amid intense competition from Google and TikTok • Shares of the company have gained about 7 per cent this year, underperforming a roughly 12 per cent rise in the benchmark S&P 500
- Analysts estimate Meta's capital expenditure more than doubled to $41.68 billion in the September quarter, according to Visible Alpha data
- The rising spending had squeezed its free cash flow in the second quarter and analysts expect it to report a cash burn of $8.52 billion in the third quarter
- Morgan Stanley analysts raised their earnings estimates for 2027 and 2028 for Meta despite higher spending, citing stronger ad growth and the potential for new AI products to generate additional revenue
- Wall Street expects Meta to report a decline of about 17 per cent in net income to $15.44 billion, according to data compiled by LSEG
- Meta is set to report revenue growth of 23.8 per cent to $63.42 billion, slowing from about 28 per cent in the previous quarter amid intense competition from Google and TikTok
- Shares of the company have gained about 7 per cent this year, underperforming a roughly 12 per cent rise in the benchmark S&P 500
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