Meta Is Set to Report Earnings Later Today. Its AI Plans Will Be in Focus

Core Viewpoint - Meta is expected to report strong earnings driven by AI investments, with significant attention from investors on the upcoming third-quarter earnings report [1][4][5] Financial Performance - Meta is projected to report earnings of $6.70 per share and record revenue of $49.55 billion, primarily due to improvements in its advertising business attributed to AI enhancements [3][5] - The stock has increased nearly 30% in 2025, indicating positive market sentiment [5] Investor Sentiment - Investors are closely monitoring Meta's ability to demonstrate revenue growth that justifies its substantial AI spending [4] - Analysts are optimistic, with a mean target price of approximately $873, suggesting a potential upside of around 16% from current trading levels [5] Market Expectations - The earnings report is seen as a critical test for Meta, with options pricing indicating a potential stock movement of 6% in either direction following the results [4]