Meta beats estimates, forecasts more spending

The news: Social media giant Meta Platforms beat expectations for third-quarter revenue and profit as advertisers flocked to its digital platforms ahead of the holiday shopping season.

The numbers: The Facebook and Instagram owner said revenue for the quarter ended September rose 23% to USD34.15 billion ($54 billion), ahead of analyst expectations, and it also handily beat profit forecasts. That prompted its shares to rise 4% in after-market trading, with the stock up nearly 150% so far this year.

The context: Meta has been climbing back from a bruising 2022, buoyed by the hype around emerging artificial intelligence technology, a recovery in digital advertising and an aggressive austerity drive in which it shed around 21,000 employees in the past year. The company also trimmed its expense forecast for the current year but warned of additional spending and regulatory pressures ahead for 2024, citing higher infrastructure investments, hiring plans and expected losses on its metaverse-oriented Reality Labs unit.