META ERASES MOST AFTERHOURS GAINS AFTER CFO WARNS SIGNIFICANT INVESTMENT WILL RAISE SERVING COSTS

What happened: Meta shares erased most after hours gains after CFO Susan Li said expanding Muse's user base will require significant investment and that total serving costs are expected to rise. Key numbers: Q3 revenue $64.60 billion, +26% y/y. Operating income $12.99 billion, -37% y/y. EPS $3.83. Q4 revenue guidance $73-76 billion. Why it matters: The CFO's comments point to higher capex spending beyond the 2026 guide, a concern for a company whose free cash flow has turned negative. Meta also lifted its 2026 expense outlook to $175-179 billion to include a $9.9 billion legal charge.

Meta shares erased most after hours gains after CFO Susan Li said expanding Muse's user base will require significant investment and that total serving costs are expected to rise.

The CFO's comments point to higher capex spending beyond the 2026 guide, a concern for a company whose free cash flow has turned negative. Meta also lifted its 2026 expense outlook to $175-179 billion to include a $9.9 billion legal charge.