Meta is set to report Q3 earnings after announcing a $72 billion AI investment. Layoffs in the AI division continue as the company hires specialists and expands its infrastructure. Expected Q3 EPS is $6.72 on $49.6 billion revenue, up from $6.03 and $40.6 billion last year. Ad revenue could reach $48.6 billion, a 21% increase from last year. Unlike competitors, Meta uses AI to boost advertising and user engagement, not enterprise sales. CEO Mark Zuckerberg credits AI for improved ad performance on Instagram and Facebook. The pressure is on for Meta to prove AI’s worth as it competes with Google. BofA Global Research emphasizes the importance of Meta’s AI outlook for investor sentiment. Meta shares are up 25% YTD but lag Google’s performance. The company is leveraging AI in hardware products like smart glasses and headsets, though questions remain about consumer benefits. Futurum’s Olivier Blanchard is cautiously optimistic about Meta’s ad business but questions the company’s hardware strategy.

Read more at Yahoo Finance: Meta to report Q3 earnings as AI spending continues to pile up