Meta Platforms (META) reported strong third-quarter financial results, posting record revenue of $64.6 billion, a 26% year-over-year increase that beat analyst expectations of $63.4 billion. GAAP earnings per share were $3.83, though this figure was significantly impacted by a $9.9 billion legal charge related to a settlement with state attorneys general regarding teen mental health issues. Excluding this one-time charge, adjusted EPS would have been $7.40, representing an 11% increase over the prior year. Despite the robust top-line performance and positive analyst sentiment—with multiple firms like Bank of America and JPMorgan raising price targets—the stock experienced a sharp decline in trading sessions following the earnings release. This sell-off was driven by broader market fears regarding the sustainability of Meta's massive capital expenditure plans for artificial intelligence data centers, which management has raised to between $135 billion and $145 billion. A key strategic development is the launch of 'Muse,' a personal AI agent that gained over 10 million users in the U.S. and Canada within six weeks. CEO Mark Zuckerberg highlighted Muse's potential for long-term profitability and cost efficiency, targeting a tenfold improvement in compute costs within a year. Additionally, Meta announced plans to issue new nonvoting Class C shares to fund its AI ambitions while maintaining CEO voting control, a move intended to mitigate the impact of California's Proposition 40. Looking ahead, Wall Street analysts are closely monitoring whether Meta can monetize its AI investments by 2027 and manage the high costs associated with Reality Labs. While the core advertising business remains healthy with rising ad prices and impressions, investors remain cautious about the sheer scale of future spending required to maintain leadership in the AI sector.