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.
\n\nThe company has rolled out several AI products and services targeting businesses as CEO Mark Zuckerberg looks to create a new revenue stream beyond advertising to compete better in the AI race with OpenAI and Anthropic.
\n\nPositive reception for Meta's Muse assistant, which offers subscriptions, and its latest AI models have boosted investor confidence in the company's AI strategy, as Meta commits hundreds of billions of dollars to expanding its AI infrastructure.
\n\n"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.
\n\nAnalysts estimate Meta's capital expenditure more than doubled to $41.68 billion in the September quarter, according to Visible Alpha data.
\n\nThe 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.
\n\nMorgan Stanley analysts raised their earnings estimates for 2027 and 2028 for Meta…
Original source: https://www.cnbctv18.com/technology/
