Meta’s third-quarter revenue jumped 26% to about $64.6 billion, and shares rose more than 4% after hours. But the real story is the price tag of the AI race.

Meta spent nearly $35 billion on capital projects in the quarter, and free cash flow turned negative by about $2.1 billion. Full-year capital spending is now expected to land between $135 billion and $145 billion as Meta builds out AI infrastructure.

Meta says its AI investments are already improving engagement, recommendations, and ad monetization. The question is whether that spending will generate enough future cash flow to justify itself. The next signal to watch is free cash flow. If it rebounds while revenue keeps growing, the strategy looks easier to defend. If not, investor patience may start wearing thin.

We don’t chase hype, we decode the market.

Want to make smarter financial decisions and build lasting wealth for your family? Visit https://GenerationalWealth.biz

Generational Wealth. Understand the markets. Build your future.

For education only, not financial advice.

#Meta #Aistocks #Freecashflow #Earnings #Techstocks #Stockmarket #Investing #Generationalwealth