Meta reported fiscal 2026 third-quarter results: revenue reached $64.6 billion, beating the market forecast of $63.3 billion, according to a report.
Ad prices rose 14% year-over-year while impressions increased 10%, with growth mainly driven by pricing.
Fourth-quarter revenue guidance was set at $73 billion to $76 billion, with the upper end exceeding the buy-side threshold of roughly $75 billion.
At the same time, the company disclosed a capital structure arrangement: the creation of non-voting Class C common stock, distributed as a 1-for-1 stock dividend, effectively equivalent to a 2-for-1 stock split, taking effect on January 19, 2027, with fundraising listed as the primary use of proceeds.
Management said on the earnings call that the 2027 budget and capacity plans are still being formulated and that the company will continue to invest aggressively.
The early commercialization of Muse is the most noteworthy incremental development worth tracking this time.
Management disclosed that the most common use case for Muse is shopping, with more than a quarter of users completing purchases through it, with an average order value exceeding $200; transaction volume in the first week after launch exceeded internal expectations, requiring a partnership with Stripe to raise credit limits. About 25% of users who have set up Muse use it daily, with retention levels more than double those of Threads in its early stage. The company estimates that at least 500 million small and micro enterprises acquire customers through Meta apps, and Muse can simultaneously serve merchants' customer acquisition and users' transactions, with a commercialization path initially taking shape.
Computing constraints are currently the hardest bottleneck.
Management made clear that Muse runs at high computing intensity, and expanding its user scale requires substantial investment, which will raise overall service costs; precisely because of computing limitations, the product has not yet launched globally. The company expects that over the next year, through non-peak computing utilization, model efficiency, and inference optimization, it can improve computing cost efficiency by more than 10 times, at which point profitability can be achieved once revenue reaches scale. This statement is a direct demand confirmation for the computing industry chain and also explains why capital expenditures remain elevated. Meta used a solid earnings report to confirm the monetization potential on the AI application side, while using Muse's computing constraints to once again confirm the necessity of infrastructure investment. E Fund AI (03489) covers both U.S. computing power and Hong Kong application sides, with holdings including AI leaders such as Meta, Nvidia, and Micron, making it a convenient tool for capturing the chain from "Muse-type application volume ramp-up to rising computing investment." E Fund Asian Semiconductors (03486) focuses on storage, foundry, advanced packaging, and equipment. If computing demand from cloud players such as Meta remains high, the capacity and price elasticity of Asia's semiconductor industry chain will benefit directly.
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