Meta reports its third-quarter results after the market closes today, and the debate is no longer about whether artificial intelligence matters but about what it costs. The research desk at Actium Soluciones reviews the latest Meta picture, as the stock trades near $693 and investors ask when the company’s heavy investments will start to pay off.
Earnings Day Arrives
Few reports this season carry as much weight for the technology sector. Meta spends more on AI infrastructure than almost any other company, so its numbers act as a test for the whole theme. A strong result could calm doubts that have been building in recent weeks, while a weak one could feed them.
The company has a good case to make. Its advertising machine remains one of the most profitable businesses in the market, and AI tools are helping it target ads better and keep users engaged for longer. The question is whether that progress is large enough to justify the speed at which costs are rising.
What The Market Expects
Analysts forecast quarterly revenue of about $63.3 billion, nearly 24% higher than a year earlier, and operating income near $16.9 billion. Estimates for earnings per share vary between about $5.70 and $6.70 depending on how one-time items are counted, so the headline comparison may differ by source.
Almost all of the sales should come from the family of apps, which includes Facebook and Instagram, with an estimated $62.8 billion in revenue. The virtual and augmented reality unit is expected to lose roughly $5.7 billion in the quarter. Investors will compare the real figures with these estimates and, just as importantly, with management’s comments on the next quarter and on 2027.
Advertising Still Pays For Everything
The advertising business is where the link between AI and profit is easiest to see. When algorithms predict behavior better, advertisers get better results and spend more. This boosts revenue without requiring a new product line, and that is why many analysts see the investment as defensible.
A Capital Bill Close To $140 Billion
The heaviest pressure comes from spending. Estimates for 2026 capital expenditure have climbed to roughly $140 billion, almost double last year’s level. The money goes to servers, data centers and the hardware needed to train and run advanced models.
High spending can be reasonable if it builds a lasting advantage. The concern appears when costs grow faster than revenue and the payoff is still years away, because then more cash goes into investment and less is left for free cash flow or for shareholders. For that reason, any update to spending plans will be one of the most closely watched items of the report.
The New AI Assistant Draws Attention
A new AI assistant called Muse has also entered the conversation. It has reached roughly 10.9 million downloads since its launch in September and an estimated 2.5 million daily users by mid-October, which is an encouraging start.
Still, popularity is not profit. Running an assistant creates computing costs, so a large audience does not automatically mean high margins, and investors will want to see how the service will earn money.
Price Action And Analyst Targets
The shares fell about 1.6% on Tuesday to close at $694.25, and they trade close to that level ahead of the report. That puts the previous close, near $705, as the first level buyers would want to recover, while Tuesday’s close is the line that sellers are defending.
Wall Street remains optimistic. Several well-rated analysts recently raised their targets, which now run from about $850 to $920, far above the current price. These targets show confidence in the long-term story, yet they will matter little if the spending outlook disappoints.
What Traders Can Do
Event days call for caution. Waiting for the report and the investor call before taking a new position can reduce the risk of reacting to a gap. Smaller positions and stops placed before entry make sense, and checking the broader technology sector helps show whether a move is specific to Meta or part of a wider trend.
Conclusion
Meta heads into its report with strong advertising, a promising new assistant and a spending plan that investors find hard to ignore. The key test is whether revenue and profit growth can keep pace with a capital bill close to $140 billion. The $694 close is the level to watch, while $705 is the first barrier for buyers.
Traders following Stocks strategies should watch the revenue figure, the spending outlook and the comments on Muse, since these factors are likely to decide whether the shares rally or fall after the release.