News about capital expenditure

Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.

Meta Platforms (META) reports third-quarter earnings after the close on Wednesday, alongside a wave of Big Tech peers. The GAAP EPS estimate is $3.54, though that figure may be messy because a legal settlement will be included and analysts differ on how it will be accounted for. Options imply a 3.2% move in either direction, the smallest since the fourth-quarter report before last. Estimates for next year's capex vary widely: Wedbush near $250 billion, Evercore ISI $210 billion, Bank of America $205 billion and Dan Ives around $194 billion. Most analysts say that spending is acceptable if Meta provides a Muse roadmap and confidence it can monetize it, and the stock is up about seven and a half percent year to date.

Meta (META) reports earnings on Wednesday after a run of positive product headlines, but Evercore ISI analyst Mark Mahaney warned the company may guide to capex and total expenses above Street estimates, making 2027 earnings forecasts likely to come down. His rough guess is total expense growth of about 40% in 2027 and capex dollar growth similar to 2026, or around $70 billion. Meta's new Muse Wonder and Muse Wonder Full models have drawn praise for their speed, and the stock has risen about 6% in the past month. Yorkville Ives' Dan Ives still considers Meta a core name to own, citing its 3.6 billion daily users.