Meta Platforms is set to release its third-quarter results after the US market closes on October 21, with the earnings call scheduled for 4:30 p.m. ET (2:00 a.m. IST on October 22). Wall Street expects revenue of approximately $63.4 billion, but the company’s outlook for 2027 spending could ultimately determine whether the results trigger a rally or deepen pressure on META stock.
Revenue Growth Expected
Analysts expect Meta’s third-quarter revenue to increase approximately 23.8% year over year, supported by advertising demand and AI-driven improvements across Facebook and Instagram. The advertising business remains the company’s primary revenue engine, helping fund investments in AI models, data centers, and new consumer products.
Costs and Legal Charge Complicate Comparison
Meta’s expanding cost base and a roughly $10 billion legal charge related to a multistate child-safety settlement complicate the earnings comparison. Analysts expect net income to decline year over year despite revenue growth, putting greater emphasis on operating expenses, underlying advertising performance, and management’s forward guidance.
The critical question is whether AI investments are improving advertising efficiency and engagement quickly enough to offset the costs of building out the infrastructure behind them.
Capital Expenditure in Focus
Meta’s capital expenditure plans will be a central focus of the earnings call. Analysts estimate that capital expenditure reached approximately $41.7 billion in the September quarter, reflecting the scale of the company’s infrastructure expansion. Rising investment has put pressure on free cash flow, making the pace of future spending increasingly important to investors.
Meta’s 2026 capital expenditure outlook already stands at $130 billion to $145 billion. Any indication that spending will climb further in 2027 could raise concerns about returns on investment, particularly if revenue growth fails to accelerate alongside the additional outlay. Conversely, management could strengthen investor confidence by demonstrating that AI is delivering measurable gains in advertising performance while creating new monetization opportunities.
Muse AI Assistant Adoption Watched
The Muse personal AI assistant is another metric to watch. Meta is seeking to expand beyond advertising through AI-powered products and services, but investors will want evidence of adoption and a credible path toward revenue generation. Strong engagement alone may not justify a higher valuation unless it eventually translates into meaningful financial returns.
Technical Levels
Meta stock price closed at $694.25, down 1.59%, in the latest session. The pullback leaves the stock approaching a key technical zone as traders prepare for a potentially sharp earnings reaction.
The $650–$655 support area is the first level to watch. Holding this zone could help stabilize the stock and create room for a recovery toward $735 resistance. A sustained move above $735 would improve the near-term technical outlook, bringing the higher $780–$800 zone back into focus. However, a decisive break below $650 could weaken the chart and expose the next support area near $625. With earnings and forward guidance likely to dominate short-term trading, technical levels remain conditional on the market’s interpretation of the results.
Final Take
Meta’s earnings reaction will likely depend on whether management can balance continued advertising growth with the rising cost of AI expansion. Revenue near expectations may offer limited support if 2027 spending projections rise sharply or cash-flow concerns intensify. For META Platforms (NASDAQ:META), 2027 capital expenditure guidance is the key swing factor. Evidence that AI investments are improving monetization could support a recovery, while a further spending increase without a clearer path to returns could leave the shares under pressure.
