Meta Prepares for Q3 Earnings with Focus on AI and Rising Costs

Meta Platforms Inc. (META) is scheduled to report third-quarter financial results on October 21 after the market closes. Wall Street analysts expect the company to report earnings per share of $6.28 and total revenue of $63.32 billion. In the previous quarter, Meta posted $60.80 billion in revenue, beating expectations, but reported earnings per share of $6.18, which fell short of consensus estimates.

Investor attention is focused on rising expenses and capital spending. Management previously guided for full-year expenses between $165 billion and $169 billion, alongside capital expenditures of $130 billion to $145 billion. Because cost increases contributed to the earnings miss in the second quarter, market participants are closely watching whether third-quarter revenue meets guidance of $61 billion to $64 billion.

Looking ahead, investors are watching for growth in artificial intelligence capabilities, including early monetization metrics for the Muse AI agent. Analysts maintain an average price target of $830.04 with a consensus Buy rating, with recent price targets set between $886.00 and $1,000.00. Shares of Meta were recently trading at $767.30, up 3.28% for the session.