Strong advertising, cost reduction is effective, but Meta's warning of a huge loss in the metaverse! Meta's stock soared after hours and then fell | Earnings Report Insights

In the third quarter, Meta's revenue growth rate doubled compared to the previous quarter, with EPS profit increasing by 168% YoY, and operating profit margin doubling YoY. Social media app revenue exceeded expectations with a growth of 24%, while metaverse revenue fell dramatically by 26% below expectations, but the loss was 5% lower than expected. Meta has lowered its full-year expense guidance by $2 billion and expects expenses to increase by more than 10% next year, partly due to the significant increase in losses from the metaverse business compared to this year. Meta has also lowered its capital expenditure guidance for this year by $1 billion, with an expected increase of 20% next year, partly due to investments in AI servers and data centers. After the earnings report was released, Meta initially rose by 5.5% in after-hours trading but later fell by more than 3%.