"Meta said that its AI infrastructure spending will continue to rise, and that 2026 cap-ex will be "notably larger" than 2025. On a call with analysts, Zuckerberg said that a "significantly larger investment" in compute is "very likely to be a profitable thing." In the "very worst case," he said, Meta will have pre-built capacity and will absorb the depreciation costs."
"Mark Zuckerberg explained Meta's plan to spend more than ever on AI after the company announced earnings that were dragged down by a $15.9 billion tax charge. The social media giant and AI hyperscaler reported revenue of $51.24 billion, beating Wall Street's estimates of $49.5 billion. Earnings per share came in at $6.03, compared to estimates for $6.72. The stock fell more than 9% in after-hours trading."
"Meta CFO Susan Li said that a number of "youth-related trials" slated for 2026 could also result in "a material loss." She also walked through the one-time $15.9 billion tax charge and said Meta expected its taxes to decrease in future years due to the Trump's Big Beautiful Bill Act."
Meta reported Q3 revenue of $51.24 billion, beating Wall Street estimates, while earnings per share of $6.03 missed expectations and shares fell over 9% after hours. Leadership plans to increase AI infrastructure spending, with 2026 capital expenditures expected to be notably larger than 2025. Zuckerberg said a significantly larger investment in compute is very likely to be profitable and that, in the worst case, pre-built capacity would absorb depreciation costs. Much of the call focused on Meta's superintelligence lab, recruitment spending, and its role in delivering new technological capabilities to improve products. CFO Susan Li warned of potential material losses from youth-related trials and outlined tax expectations tied to recent legislation.
Read at Business Insider
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