Meta releases Q3 earnings amid scrutiny of Muse assistant spending
Meta is dropping its third-quarter earnings this Wednesday, and all eyes are on how much the company is pouring into artificial intelligence, especially its Muse assistant.
While Meta expects to see some revenue growth, analysts are a bit cautious: those huge investments in AI could mean less cash on hand for now.
Still, the company hopes these moves will pay off and help it stay ahead in a tough tech race.
Meta capital spending may hit $41.68B
Mark Zuckerberg has been rolling out new AI tools to make Meta less dependent on ads and more of an OpenAI rival.
The Muse assistant launch got investors excited, but costs have soared: capital spending could hit $41.68 billion in the September quarter, with $8.52 billion burned just in the third quarter.
Analysts predict net income will actually drop 17% to $15.44 billion as competition from Google and TikTok heats up.
Even though Meta's stock is up 7% this year, it's still trailing the S&P 500's 12% rise, a sign that challenges remain for the tech giant.