Analysts said investors were likely perturbed by how much Meta Platforms Inc is targeting at least $25 billion in its bond sale, Bloomberg News reported on Thursday, a day after the company forecast "notably larger" capital expenses next year due to investments in artificial intelligence and data centers.According to fixed-income news service IFR, the Facebook and Citigroup and Morgan Stanley are leading the offering, IFR reported. Shares of Meta were down about 10.5 per cent during premarket hours on news ...

Core Viewpoint - Meta's stock price plummeted over 10% despite strong earnings, driven by market skepticism regarding the returns on its aggressive AI investments [2][5][7]. Financial Performance - In Q3, Meta reported adjusted earnings per share of $7.25 and revenue of $51.24 billion, both exceeding Wall Street expectations. Revenue grew by 26% year-over-year, but net profit was only $2.7 billion, significantly below analyst forecasts due to a $15.93 billion tax expense related to the "Big and Beautiful Act" [6][10]. - Reality Labs, Meta's AI hardware division, recorded an operating loss of $4.4 billion with revenue of $470 million in Q3, and is expected to see a year-over-year decline in Q4 revenue due to early stocking by retail partners [10]. Capital Expenditure Plans - Meta raised its capital expenditure guidance for 2025 to $70-72 billion from a previous estimate of $66-72 billion, as it aims to develop advanced AI tools to compete with rivals [5][6]. - CEO Mark Zuckerberg defended the company's substantial spending plans, asserting that early investments are yielding returns in core business areas and positioning Meta for future opportunities [5][6]. Market Reactions and Analyst Sentiment - Analysts expressed concerns about the potential for excessive spending, highlighting a growing tension between Meta's large-scale AI infrastructure investments and investor expectations for short-term returns [7][8]. - The market's reaction indicates a shift in sentiment, with investors becoming wary of the implications of continued high expenditures despite solid fundamentals [8][10]. Debt Issuance - Meta plans to issue at least $25 billion in investment-grade bonds, which would make it one of the largest transactions of 2025 [9].

Core Insights - Meta Platforms' stock fell by as much as 12.1% following a strong Q3 revenue report, due to forecasts of significant spending increases and a large one-time tax charge in 2026 [1][2][6] Financial Performance - Q3 revenue reached $51.2 billion, a 26% year-over-year increase and 8% higher than Q2's $47.5 billion, driven by a 14% rise in ad impressions and a 10% increase in ad pricing [4] - Expenses grew by approximately 32% year-over-year to $30.7 billion, while capital expenditures more than doubled from $9.2 billion in the previous year to $19.4 billion [4] Earnings Impact - A noncash tax charge affected earnings per share (EPS), reducing it to $1.05; however, without this charge, EPS would have been $7.25, exceeding the consensus forecast of $6.71 [5] Future Spending Concerns - The primary concern for investors is the management's outlook for 2026, indicating that total expenses will grow at a "significantly faster" rate than in 2025, driven by infrastructure, cloud spending, and AI-related depreciation [6] - Capital expenditure growth in 2026 is expected to be "notably larger" than in 2025 [6] Market Reaction - The combination of management's spending outlook and the sharp rise in shares year-to-date prompted profit-taking among investors [2][7]

You know, Meta, I think, has the best track record of any company out there of taking a new product that people love and getting it to billions of people in terms of of usage. A lot of people use Meta AI today. I mean, as I said in my my comments up front, there's more than a billion people who use it on a monthly basis.And what we see is that um as we improve the quality of the model primarily of for post-training llama 4 at this point we are um we continue to see improvements in and usage. Um so our view ...

The S&P 500 slipped 0.2% from its all-time high earlier this week, while the Nasdaq composite lost 0.6%. The Dow Jones Industrial Average, however, gained 199 points, or 0.5%, by mid-morning trade, AP reported.Markets were reacting to comments from US President Donald Trump, who called his meeting with Chinese President Xi Jinping a “12 out of 10” and announced plans to reduce tariffs on Chinese goods. Analysts, however, warned that despite the warm rhetoric, structural trade tensions remain unresolved.“The ...

直面AI . 聚焦前沿科技，抢先看到未来。 本文来自微信公众号： 直面AI ，作者：毕安娣，题图来自：视觉中国 Meta为了人工智能，不仅大力投入，还大力改革，大力裁员。但还没看到曙光，却被特朗普抽走大 部分利润，差点成了《活着》里失血过多的有庆。 以下文章来源于直面AI ，作者毕安娣 从财报中不难看到，Meta的资本支出还在扩大，而且该公司提高了全年资本支出的预估值，还暗示 明年这一数额会再增加。 过去八个月里， Meta对其人工智能部门进行了四次重组，前不久还传出裁员600人的消息。Meta 说，希望人工智能组织"更灵活"。 改革的力度很大，但Meta还没有收获改革的果实，自新的"Meta超级智能"部门组建之后，Meta发布 了一款人工智能眼镜和一个嵌入Meta AI应用的AI短视频信息流，后者还被OpenAI的Sora独立应用 对比得黯然失色。 "我们本季度表现强劲。Meta超级智能实验室开局良好，我们将继续引领人工智能眼镜行业。如果我 们能够把握住未来机遇的一小部分，那么未来几年将是我们历史上最激动人心的时期。" 但是市场显然没买账，美股盘后交易中，Meta的股价暴跌8%，市值蒸发约1600亿美元。 ...

ToplineMeta shares dropped by more than 12% as trading opened Thursday, pacing what would be the company’s largest single-day loss in years after a nearly $16 billion tax charge lowered its quarterly earnings well below Wall Street’s forecasts. Earnings fell significantly below Wall Street’s expectations, though Meta said it would have exceeded projections before the tax charge.Getty ImagesKey FactsShares of Meta fell 12.3% to around $658.50 after the bell rang Thursday morning, the largest intraday loss fo ...

Meta's spending is hard to rationalize, some analysts say, as it's uncertain whether heavy investments into the metaverse will generate compelling returns. ...

Core Insights - Tech investors are facing a paradox as both Meta Platforms Inc and Microsoft Corp reported better-than-expected quarterly results, yet their stock prices are under pressure [1] Company Performance - Meta Platforms Inc and Microsoft Corp both exceeded earnings expectations for the quarter, indicating strong performance in the AI sector [1] - Despite the positive earnings reports, both companies are experiencing stock price declines, highlighting a disconnect between financial performance and market sentiment [1] Market Reaction - The market's reaction to the earnings reports of these tech giants suggests a cautious outlook among investors, potentially due to broader economic concerns or market volatility [1] - The contrasting performance of these companies in the stock market raises questions about investor confidence in the tech sector, particularly in relation to AI investments [1]

This is a heavy earnings week, with 173 of the S&P 500 companies reporting earnings. Apple and Amazon.com report after Thursday’s close. Q3 earnings have been running strong so far. According to Bloomberg Intelligence, 84% of the S&P 500 companies that have reported so far have beaten forecasts, on course for the best quarter since 2021. However, Q3 profits are expected to have risen by +7.2% y/y, the smallest increase in two years. Also, Q3 sales growth is projected to slow to +5.9% y/y from +6.4% in Q2.St ...