Meta profits will appear this week. Wall Street expects significant growth

Wall Street is forecasting double-digit growth in earnings and sales Facebook’s parent meta-platformas the tech giant continues to ramp up its AI efforts.

Meta is expected to report earnings per share of $5.21 when it reports third-quarter results after the call on Wednesday, according to estimates compiled by FactSet (FDS). This represents revenue of $13.49 billion, up 16% year-over-year.

They also forecast an 18% year-over-year jump in sales to $40.19 billion for the quarter.

The results would be the first reflection of the tech giant’s ramping up its AI efforts. This year alone, the company’s total spending is expected to reach significant levels from 35 to 40 billion dollarsaccording to JPMorgan Chase (JPM) analyst Doug Anmuth. Next year, this figure could reach 42 billion dollars.

CEO Mark Zuckerberg revealed how some of those investments have already started to pay off at the company the annual Connect conference in September Zuckerberg said Meta AI is on track to become the most used AI assistant in the world by the end of this year, with nearly 500 million monthly active users as of today. Goal added the AI ​​assistant to its popular social media platforms, including Instagram and Facebook (GOAL), in April.

Zuckerberg also announced Llama 3.2, Meta’s first open source multimodal large language model (LLM). The CEO said the AI ​​industry has reached an inflection point and that Llama has become “something of an industry standard.”

This has contributed to a successful year for the company, with shares up roughly 67% year-to-date. One share of Meta is valued at about $577, which is close to an all-time high.

In a recent note, Jeffries (JEFF) analysts reaffirmed their belief in Meta’s ability to sustain double-digit revenue growth, pointing to a combination of higher engagement from investments in artificial intelligence, improved advertiser performance and ramping up of other monetization formats, including WhatsApp and Llama.

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