Meta Faces Investor Scrutiny Over AI Infrastructure Spending

Wall Street analysts expect Meta to report revenue of $60.22 billion, a significant jump from the $47.52 billion recorded during the same period last year. Net income is projected to reach $18.58 billion, or $7.19 per share. Despite these strong top-line expectations, the company’s stock has shed 11% of its value over the past three months, recently trading near $595.64.

Market attention remains fixed on Meta's capital expenditure. The company has been aggressively securing data-center capacity and issuing proposals for large-scale energy and real estate projects to support its compute requirements. Benchmark analysts warn that the report must bridge the gap between AI aspirations and reality, specifically regarding compute capacity. Meanwhile, the core advertising business continues to benefit from AI-driven product improvements that increase user engagement and ad clicks. Wedbush analysts noted that these technical enhancements serve as a clear lever for growth, provided the broader advertising market remains stable.