Core Viewpoint - Meta Platforms Inc is expected to deliver a strong quarter driven by its advertising technology and AI infrastructure, despite a significant planned expenditure of $100 billion by 2026 for data centers and AI capabilities [1][2]. Financial Performance - Meta's projected revenue for the third quarter of 2025 is $49.4 billion, reflecting a 22% year-over-year increase, with earnings per share (EPS) expected to be $6.69, aligning with Wall Street consensus [5]. - Revenue growth is anticipated to moderate to 18% year-over-year in the fourth quarter [5]. Investment and Growth Strategy - The company is making substantial investments in AI infrastructure and advertising technology, which are seen as key growth drivers, with a sustained revenue growth trajectory in the high teens to low 20% range [2][4]. - Meta secured $22 billion in third-party financing for its 5-gigawatt Hyperion data center in Louisiana, which is viewed as a strategic move to enhance its capital outlook and support long-term expansion [3]. Market Position and Outlook - Despite concerns regarding consumer spending, Meta and Alphabet are considered well-positioned among large-cap tech companies for the current earnings season [4]. - The digital advertising market remains resilient, bolstered by trends towards programmatic advertising, connected TV, and generative AI tools [3]. Capital Expenditure - Meta plans to allocate $66–$72 billion in capital expenditures for 2025, representing a more than 70% increase from 2024, with total spending potentially reaching $100 billion by 2026 [5]. - Free cash flow is projected to decline from $52.1 billion in 2024 to $40.4 billion in 2025 and further to $32.2 billion in 2026 [5].

The Justice Department argued that the best way to address the company's unfair advantage was to force it sell off portions of its business. ...