Meta Platforms' third-quarter results Wednesday will put the cost and potential payoff of AI investment under scrutiny after a sharp weekly decline in U.S. technology shares.
Meta plans to release its third-quarter 2026 results after U.S. markets close Oct. 21 and hold a conference call at 4:30 p.m. ET. Investors will have an opportunity to assess what the company says about the finances behind its AI investments.
AP reported that the Nasdaq Composite fell 4.5% in the week ended Oct. 16, while the S&P 500 lost 1.9%. On Monday, AP reported, the Nasdaq rose 1.1% and the S&P 500 gained 0.4%. The Dow Jones Industrial Average slipped 0.1%.
Semiconductor shares faced a steeper October decline. The Philadelphia SE Semiconductor index was down about 12% for the month through Oct. 16, Reuters reported, although it remained up 57% in 2026. Reuters also reported that health care and consumer staples stocks gained during the week technology shares fell.
The scale of expected AI investment adds weight to the upcoming results. Goldman Sachs estimates that five AI hyperscalers, including Meta, will spend about $1.2 trillion combined in 2027, Reuters reported. That figure is a spending forecast, while the financial returns from those investments remain to be demonstrated.
Reuters also reported that LSEG IBES expected S&P 500 companies' third-quarter earnings to grow more than 30%.
Lam Research and Texas Instruments also have quarterly calls scheduled for Wednesday. Their results could provide more context on semiconductor demand and equipment spending.
Inflation adds to the backdrop for investors weighing borrowing costs. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index rose a seasonally adjusted 0.6% from August to September and increased 3.7% over the 12 months through September before seasonal adjustment. The Federal Reserve's next policy meeting is scheduled for Oct. 27–28.
