As artificial intelligence once again drove its primary advertising business, Meta Platforms (META.O) opened a new tab on Wednesday that forecasted third-quarter revenue well beyond analysts’ projections, sending its shares skyrocketing 11% in extended session.
As Facebook aims to alter Wall Street’s perception that it behind competitors like Microsoft (MSFT.O), opens new tab, and Alphabet’s (GOOGL.O), opens new tab Google, in the AI race, the impressive findings may allay investor concerns about the social media behemoth’s frantic spending pace, at least for the time being.
In a call with investors, CEO Mark Zuckerberg stated that AI was enabling significant advancements in Meta’s business, which generates revenue through the sale of Facebook and Instagram advertising. As a result, Meta increased the lower end of its annual capital expenditures forecast by $2 billion, to a range of between $66 billion and $72 billion.
According to Meta, the expense growth rate in 2026 will surpass that of 2025 due to rising prices for data center infrastructure development and personnel remuneration. The company has been paying researchers enormous wages. The business also plans to increase its capital expenditures in the upcoming year.
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