Analysts are looking ahead to Meta’s third-quarter results, scheduled for release on October 21. [2] Bank of America expects Meta to exceed revenue expectations. [1, 2] The bank forecasts revenue of $63.8 billion, compared with consensus of $63.3 billion. [1, 2]
Bank of America significantly lowered its earnings-per-share estimate, citing an expected one-time legal charge. [2] The charge is tied to an $18 billion settlement over claims that Meta’s apps were designed to be addictive to young users. [2]
Investors remain concerned about Meta’s spending on AI infrastructure, which could reach approximately $205 billion in 2027. [1] The spending could weigh on free cash flow. [1] A Goldman Sachs downgrade has also added to negative sentiment ahead of the earnings announcement. [1]
Investors are weighing near-term profitability against Meta’s long-term AI ambitions.