After Meta's financial report, the stock price rose by about 3% after trading, and analysts are concerned about the strong advertising business and progress of Muse AI According to BlockBeats, on October 22nd, Meta's third quarter revenue increased significantly by 26% year-on-year to $64.6 billion, exceeding market expectations; Adjusted earnings per share (excluding one-time legal fees) also significantly exceeded expectations. After the release of the financial report, the stock price rose by about 3% to 4% after market hours. Specifically, advertising revenue increased by 26% year-on-year, advertising display volume increased by 10%, average advertising prices rose by 14%, and daily active users of home applications reached 3.64 billion. GAAP EPS is $3.83, mainly affected by a one-time legal settlement fee of approximately $9.89 billion (reached with multiple state attorneys general in the United States to settle lawsuits related to adolescent mental health and social media); After excluding this cost, the adjusted EPS is about 7.40 dollars. The company's fourth quarter revenue guidance is between $73 billion and $76 billion, with a median higher than market consensus. The annual capital expenditure guidance has narrowed to $135 billion to $145 billion. Reality Labs' revenue fell short of expectations, with an operating loss of approximately $4.1 billion. The company expects the business's annual loss to narrow to $18-19 billion and further decrease to approximately $15 billion by 2027. Jeffrey Wlodarczak of Pivot Research raised his target price from $930 to $960 after the financial report, citing better than expected revenue and capital expenditures, and emphasizing Muse's active use of data: over a quarter of Muse users shop through the agent, with an average purchase amount exceeding $200. Brent Thill from Jefferies stated that there is "upside potential" in the fourth quarter guidance. On the other hand, Brian Pitz of BMO Capital maintains a holding rating and a target price of $580, acknowledging Muse's early momentum and AI product progress, but still focusing on the visibility of returns and cost trajectory of high capital expenditures in 2026-2027. Wall Street maintains a "strong buy" consensus rating for Meta, with an average target price of around $820 and an implied upside potential of about 17%. The market generally believes that powerful advertising engines (aided by AI recommendation systems and generative AI tools) are providing funding support for large-scale AI infrastructure investment, and Muse, as an early attempt at personal super intelligence, has shown commercial potential (including shopping and potential subscription scenarios). Although free cash flow has turned negative due to high capital expenditures and legal fees affecting reported profits, investors are currently more willing to pay for growth and AI narratives rather than overly concerned about short-term expense pressures.