Meta's Mixed Signals: High Revenue Meets Rising AI Costs

Meta Platforms exceeded third-quarter revenue and profit projections but warned investors about rising infrastructure expenses for AI. Despite a strong profit of $6.03 per share and revenue of $40.59 billion, concerns about future costs led to a 2.5% drop in shares during after-hours trading.

Meta Platforms, the proprietor of Facebook, surpassed third-quarter revenue and profit expectations, yet sent mixed signals due to anticipated increases in infrastructure spending for artificial intelligence.

Reported earnings for the third quarter stood at $6.03 per share, with revenues totaling $40.59 billion. These figures exceeded the projections of Wall Street analysts, who estimated $5.25 per share and $40.29 billion in revenue, according to LSEG data.

Despite the promising financial report, shares fell 2.5% in post-market trading amid concerns about escalating future costs, as the company warned of significant infrastructure expense growth next year. This comes after bolstering digital ad sales, the primary revenue driver, particularly during a holiday season spending surge.

(With inputs from agencies.)