Meta to report Q4 earnings amid AI spending concerns

Core Insights - Meta is set to report its fiscal fourth quarter earnings, with a focus on its spending on AI data centers, as its stock price has declined over 12% since the last earnings report [1] Financial Projections - Meta has increased its projected capital expenditures for 2025 to between $70 billion and $72 billion, with expectations for notably larger growth in 2026 [2] - In Q4, Meta is expected to spend $21.9 billion, up from $14.4 billion in the same quarter last year, with projected earnings per share (EPS) of $8.16 on revenue of $58.4 billion [2] Business Performance - The Reality Labs division is expected to generate $959 million in revenue but will report an operating loss of $5.9 billion [3] - Meta has invested $14.3 billion to acquire 49% of Scale AI and appointed its CEO as Meta's chief AI officer [4] Competitive Landscape - Meta is facing challenges with its AI models, including delays with the Llama 4 Behemoth, and is considering making its next major AI model proprietary [5] - Competitors like Google have gained an edge in the AI race, with Google's share price increasing by 66% over the last 12 months, while Meta's stock has only risen by 4% [6] Regulatory Environment - Meta is dealing with increasing calls for social media bans for children under 16, with Australia already implementing a ban and France considering similar actions [7]