Meta (META) will kick off Big Tech earnings season by reporting its third-quarter results after the bell on Wednesday.
For the third quarter, Meta is expected to post earnings per share of $3.56 on revenue of $63.3 billion, according to consensus estimates from Bloomberg analysts. This represents an increase from the $1.05 billion and $51.2 billion the company reported in the third quarter of last year.
Capital spending, however, is expected to increase 117% year over year to $41 billion. Meta’s Reality Labs segment is expected to see an operating loss of $5.2 billion.
The company’s earnings come as AI investors waver between hope and concern over CoreWeave’s (CRWV) debt load.
Adding to this unease is a Gartner report last week indicating that AI revenue infrastructure companies are expected to spend more than $8.5 trillion through 2030, but that consumer and enterprise AI revenues will only total $3.6 trillion, potentially leaving “more than $4 trillion in asset value at risk of impairment through 2032.”
Meta stock is down more than 3% over the past year as Wall Street seeks more clarity on how the company plans to monetize its prodigious spending.
But the social media giant has also scored several victories in recent weeks. Its Muse AI agent reached 10 million downloads just 40 days after its launch in the United States, market information company Sensor Tower announced Tuesday.
This is faster than OpenAI’s ChatGPT (OPAI.PVT) and Anthropic’s Claude (ANTH.PVT), which reached their goal in 123 days and 673 days, respectively.
Meta also launched its frontier-class Muse Wonder and Muse Wonder Full AI models, proving that it can compete with Google, OpenAI, and Anthropic.
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And last month, CEO Mark Zuckerberg introduced a number of new hardware products at the company’s Meta Connect conference, including the latest Ray-Ban Meta glasses, the audio-only Ray-Ban Meta Audio glasses, and the upcoming $1,299 Meta VR glasses.
“Recent AI launches have increased confidence in the company’s AI execution, and we view Meta as having the least risk of disruption to its core business from AI in our coverage,” BofA Global Research analyst Justin Post wrote in a note to investors ahead of the company’s earnings release.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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