Meta Reports Weaker-Than-Expected User Numbers for Q3

Forex - Meta reported weaker-than-expected user numbers in its third-quarter financial statements and warned of a significant acceleration in infrastructure spending in 2025.

Meta's earnings per share for the third quarter were $6.03, against expectations of $5.25, while revenues reached $40.59 billion, slightly above the anticipated $40.29 billion.

Sales in the third quarter increased by 19% year-over-year, with net income rising 35% from the previous year's $11.6 billion to $15.7 billion. This marks the lowest year-over-year growth in net income for Meta since the second quarter of 2023.

Meta reported 3.29 billion daily active users, a 5% increase compared to the previous year. The company also indicated that it expects capital expenditures to continue rising significantly in 2025 due to the acceleration in infrastructure spending.

Meta CEO Mark Zuckerberg noted in a conversation with analysts on Wednesday, "Our investments in artificial intelligence continue to require substantial infrastructure, and I expect to continue investing significantly in this area."

Meta anticipates total expenses for the fiscal year 2024 to be in the range of $96 billion to $98 billion, which is lower than its previous forecast of $96 billion to $99 billion.

The company's advertising revenue for this quarter saw an 18.7% year-over-year increase, reaching $39.9 billion. Advertising revenues accounted for 98.3% of Meta's total revenue in the third quarter.