Meta Q3 earnings updates: Investors want updates on AI and capex, with the stock up 28% in 2025

It's earnings day for Meta.

The social media giant is one of "hyperscalers" at the heart of Wall Street's AI trade, and updates on its AI ambitions will likely be the highlight of its third-quarter report after the bell on Wednesday.

Wall Street expects revenue of $49.5 billion, and investors will be waiting to hear more on its plans for capex and how it will monetize AI. Meta recently invested $14 billion in Scale AI with the goal of reaching AI "superintelligence."

Overall, Wall Street analysts remain bullish on the social media company, looking for positive updates on the trajectory of AI, but also ad spend, Instagram Reels, and devices.

Meta's earnings will be released shortly after the closing bell, with the analyst call scheduled for 4:30 p.m. ET.

William Edwards

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Meta is a top pick for JPMorgan, with analysts bullish on AI strategy and superintelligence

JPMorgan's Doug Annuth wrote that he's bullish on the social media company's AI push ahead of earnings. After a big round of layoffs in Meta's AI unit, there's a lot of anticipation for updates on the superintelligence strategy.

"We're bullish on AI Ad improvements, Reels, & Video. META continues to execute well across its AI strategy & push toward personal superintelligence prioritizing ads, engagement, business messaging, Meta AI, & AI Devices."

The bank has an $875 price target on the stock, implying 15% upside.

William Edwards

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BofA says AI outlook will be 'critical' for sentiment

A woman wears the Meta Quest 3 headset — A woman wears the Meta Quest 3, the company's stand-alone mixed-reality headset, on March 5, 2025. Joan Cros/NurPhoto via Getty Images

Bank of America analysts say they're watching what Meta says about AI, and that a disappointing update on monetization or future ambitions could sour investor sentiment.

They also said that they'll be looking at comparisons with Alphabet, which also reports results on Wednesday.

Bank of America analysts say they're watching what Meta says about AI, and that a disappointing update on monetization or future ambitions could sour investor sentiment.

They also said that they'll be looking at comparisons with Alphabet, which also reports results on Wednesday.

"Meta will report concurrently with Alphabet & we think investors will focus on revenue growth differentials & relative margin performance," Bank of America analysts wrote.

The bank continued: "Meta should compare well, we expect 23% y/y growth vs 13% for Google properties in 3Q, with Meta possibly accelerating on AI driven improvements in targeting, deeper CRM integrations, video model unification & growing advertiser adoption of Gen-AI-powered creative tools."

The bank has a $900 price target on Meta stock, a 19% increase from current levels.