Meta shares slide after company projects higher expenses for 2026

Core Insights - Meta Platforms Inc. reported strong third-quarter results but warned of significantly higher expenses in 2026 compared to this year [1][5] - The company earned $2.71 billion, or $1.05 per share, with revenue rising 26% to $51.42 billion [2][3] - Analysts had expected earnings of $6.72 per share on revenue of $49.51 billion, indicating that Meta exceeded revenue expectations [3] Financial Performance - Meta's revenue increased from $40.59 billion to $51.42 billion year-over-year, marking a 26% growth [2] - The company forecasts revenue for the current quarter to be between $56 billion and $59 billion, with analysts predicting $57.36 billion [3] - Excluding tax-related special expenses, earnings would have been $7.25 per share [2] User Engagement - Meta's daily active user base across its apps reached 3.54 billion in September, reflecting an 8% year-over-year increase [3] Future Outlook - Meta anticipates capital expenditures for this year to be between $70 billion and $72 billion, up from a previous outlook of $66 billion to $72 billion [5] - Analysts forecast expenses for 2026 to be around $97 billion [5] Market Reaction - Despite the stock drop, analysts expressed less concern about Meta's spending on AI, noting the positive revenue growth [4][6] - Management confirmed expectations for strong ad revenue moving forward [6] Strategic Focus - Meta emphasizes that advertising remains the foundation of its business, while AI serves as the growth engine [5]