According to Woofun AI, Meta (META.US) is about to announce third-quarter results. Wall Street's focus of anxiety is not on revenue growth, but on whether the $41 billion investment in artificial intelligence infrastructure can be converted into actual profits. This massive outlay is seen as a key litmus test of the ability of large tech companies to expand AI. On the eve of the announcement of the results, market sentiment fluctuated sharply between optimism about technological breakthroughs and pessimism about capital returns. Investors are closely watching how Meta (META.US) can absorb its increasingly heavy financial burden while maintaining high growth.
This collective review of AI investment efficiency has gone beyond the level of a single company and has become a core variable in the restructuring of the valuation logic of the entire technology sector.
Judging from financial expectations, there is a huge pressure on capital spending hidden behind Meta's (META.US) growth story. Yahoo Finance reports that Meta (META.US) will announce third-quarter results after the US stock market closes on the 21st local time. Wall Street estimates from Bloomberg statistics show that Meta (META.US)'s revenue for the quarter will reach US$63.3 billion, an increase of about 23.6% over US$512 billion in the same period last year. Net profit per share is expected to be $3.56, well up from $1.05 in the same period last year.
However, market concerns mainly focus on a surge in investment in AI-related equipment. Meta (META.US)'s capital expenditure (CAPEX) for the third quarter is expected to reach 41 billion US dollars, an increase of 117% over the same period last year. This figure accounts for about 65% of its expected third-quarter revenue. This high investment ratio means that Meta (META.US) is reinvesting most of its new revenue into AI model development and data center expansion rather than directly returning it to shareholders.
This 'high growth, high investment' model puts the sustainability of profitability to a severe test.
Structural losses and warnings of industry bubbles have further exacerbated market unease. Reality Labs, which is responsible for the metaverse business, is still a financial drag on Meta (META.US), and Wall Street anticipates an operating loss of $5.2 billion in the third quarter.
Meanwhile, market research agency Gartner (IT.US) issued a stark warning, predicting that AI infrastructure-related companies will invest more than 8.5 trillion US dollars by 2030, while sales of artificial intelligence-related products to consumers and enterprises during the same period were only 3.6 trillion US dollars.
This huge gap between input and output led Gartner (IT.US) to warn that assets worth $4 trillion could be at risk of depreciation by 2032. Furthermore, the debt problem of AI infrastructure company CoreWeave (CRWV.US) also affected investors' sentiment.
Although demand for AI is rising rapidly, if the equipment investment to meet this demand is too large, it may take a long time to recover the investment capital, and may even trigger an industry-wide asset depreciation crisis.
Despite concerns about large-scale investments, Meta (META.US)'s performance on the AI product side provides another story. Meta (META.US)'s AI agent, Muse, received 10 million downloads just 40 days after its launch in the US, far surpassing the competition. In comparison, OpenAI's ChatGPT took 123 days to achieve the same results, while Anthropic's Claude took 673 days. The rapid popularity of Muse shows that Meta (META.US) has significant advantages in transforming AI technology into mass consumer goods. Meta (META.US) also recently launched high-performance artificial intelligence models 'Muse Wonder' and 'Muse Wonder Full'. By continuously improving the performance of its artificial intelligence models, Meta (META.US) has officially joined the technological competition with companies such as Google (GOOGL.US), OpenAI, and Anthropic.
According to data compiled by Woofun AI, the Muse download explosion not only verified Meta (META.US)'s technical execution, but also provided initial user base support for Meta (META.US)'s huge AI investment, alleviating concerns in some markets about 'no return on investment'.
In terms of hardware expansion and market confidence, Meta (META.US) CEO Mark Zuckerberg unveiled the latest model of Ray-Ban Meta smart glasses, 'Ray-Ban Meta Audio' designed specifically for audio, and the $1,299 'Meta VR Glass' at the Meta Connect event last month.
This strategy aims to build a broader AI hardware ecosystem by applying artificial intelligence technology to existing social media services, as well as wearables and virtual reality products. Bank of America (BAC.US) global research analyst Justin Foster pointed out in a report before the results were released that various artificial intelligence products recently launched have boosted the market's confidence in Meta (META.US) technology's ability to execute. He believes that among the major Internet companies, Meta (META.US)'s core business has the lowest risk of being threatened by changes in artificial intelligence technology.
However, the market reaction remained cautious. On the day before the results were announced, on the 20th local time, Meta (META.US) shares fell 1.59% in the New York stock market from the previous trading day to close at $694.25. This decline reflects investors acknowledging Meta (META.US)'s technological potential while remaining reserved about its short-term financial pressure.
As Meta's (META.US) earnings report approaches, the market is at a critical watershed. The BlockMedia Information Service continuously tracks key indicators such as Bitcoin, BM20, Fear and Greed Index, ETF fund flow, KRW premium rate, and CLM cryptocurrency analysis through the Telegram channel to provide investors with multi-dimensional market insights.
At the same time, developments from other tech giants are also worth watching: SpaceX (SPCX.US)'s third-quarter revenue reached US$14.6 billion, with AI-related revenue exceeding 50% for the first time; Ellis shares plummeted 34%, which is seen as the epitome of warning signs that global AI investment is facing; S&P (SPGI.US) indicates that technology companies may have hidden AI debts, but there is no need to adjust credit ratings; Anthropic received a BB+ rating. Faced with AI investment risks, Bitcoin is highly vulnerable Follow.
Hwang In-hoon's views have been scrutinized in the context of the CoreWeave (CRWV.US) crisis, while the price of Bitcoin was suspended after breaking through $8.3 million, and $41.33 million of Bitcoin has flowed into Coinbase (COIN.US). Naver and Dunamu's merger and acquisition case 'Nanaumu' is undergoing key review by the Korea Fair Trade Commission to consider factors such as search exposure and advertising costs. JPMorgan Chase (JPM.US) expects Bitcoin's 10-year return of 10%, surpassing stocks, bonds, and gold; Tom Lee believes investment in artificial intelligence is slowing down or bringing opportunities to digital assets; large investors bought 89,000 more bitcoins in a month.
Pomo co-founder Park Se-yong said that in the future, all assets can be traded in one app; Access Protocol will expand its business footprint through smart devices and the NFT market; KIP CEO Lee Yun-ho said preparations should be made before the STO market opens and will share his experience in the RWA field with financial institutions. Together, these developments form a complex picture of the current intertwining of technology and the crypto market, and Meta (META.US) earnings results will be an important variable affecting this pattern.