Meta gains as investors eye AI spending
META•Meta shares rose 1.9% ahead of quarterly results due after the bell, with investors focused on the financial impact of its AI spending. Analysts expect revenue to rise 24% to $63.37 billion and adjusted earnings per share to fall to $5.75 from $7.25 a year earlier.
1. Results in focus
Investors are watching the financial impact of Meta’s AI spending push ahead of its quarterly results. Evercore ISI analyst Mark Mahaney said Wall Street’s third-quarter estimates were reasonable, citing improving spend, return on investment and share for Meta.
2. Spending and legal concerns
Meta’s second-quarter free cash flow fell 91%, and the company raised the lower end of its 2026 capital expenditure forecast, fueling concerns about its AI investments. A New Mexico judge also ordered Meta to pay $25 billion after a jury found it had misled consumers in a case involving allegations that a political consulting firm obtained Facebook user data without consent.
