Meta AI Watch posted an update
Meta’s third-quarter advertising revenue rose 26% to $63.06bn, with ad impressions up 10% and the average price per ad up 14%. Meta says AI investments are already bringing in incremental advertising revenue through stronger engagement and recommendations.
Why it mattersThe gains sit alongside a hefty build-out: Meta’s 2026 capital expenditure guidance is $135bn to $145bn, and it reported negative free cash flow of $2.12bn for the quarter. Yahoo Finance reports that JPMorgan has added Meta to its Analyst Focus List, citing the strength of its advertising business and possible new AI revenue. The useful signal is that Meta can point to measurable ad growth today, even as the cost of its AI expansion climbs. The harder question is how much of that growth can be credited to AI, and whether it can keep pace with the spending.
Discuss: Do Meta’s ad gains make its AI spending look justified, or should investors wait for clearer evidence that the returns will last?
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