Meta's AI spending, Muse assistant adoption in focus for quarterly results
META•Meta's third-quarter results are expected to draw attention to AI spending and Muse assistant adoption. Analysts estimate capital expenditure rose to $41.68 billion, while revenue is expected to grow 23.8% to $63.42 billion and net income to fall about 17% to $15.44 billion.
1. AI spending and adoption
Meta's AI spending and adoption of its Muse personal assistant will be in focus when it reports third-quarter results on Wednesday. The company has rolled out AI products and services targeting businesses as CEO Mark Zuckerberg seeks to create a revenue stream beyond advertising.
2. Analyst expectations
Analysts estimate capital expenditure more than doubled to $41.68 billion in the September quarter and expect a cash burn of $8.52 billion. Wall Street expects revenue to rise 23.8% to $63.42 billion and net income to decline about 17% to $15.44 billion. BofA Global Research analysts said recent AI launches strengthened confidence in Meta's AI execution, while Morgan Stanley analysts raised their 2027 and 2028 earnings estimates, citing stronger ad growth and the potential for new AI products to generate revenue.
