Meta's AI spending and Muse adoption take center stage in Q3 results

Meta's third-quarter results, due Wednesday, will be scrutinized for signs that its massive AI spending and Muse assistant adoption can sustain growth. The company aims to prove its AI investments generate new revenue beyond advertising. CEO Mark Zuckerberg is pushing AI products for businesses to compete with OpenAI and Anthropic. Analysts estimate capital expenditure more than doubled to $41.68 billion, with a projected $8.52 billion cash burn, though positive Muse reception and ad demand have boosted investor confidence. Wall Street expects net income to fall about 17% to $15.44 billion, with revenue up 23.8% to $63.42 billion. Meta shares have gained 7% this year, underperforming the S&P 500's 12% rise.