Meta shares surge 11% after AI boosts ad sales, surpassing high capital expenses

Meta Platforms reported stronger-than-expected third-quarter revenue, surpassing analysts’ forecasts, as artificial intelligence continued to drive growth in its core advertising business. The positive outlook sent the company’s shares surging 11% in after-hours trading. Despite significant capital expenditures tied to AI infrastructure and data center expansion, Meta’s revenue momentum proved resilient. The company highlighted that AI-powered ad tools—such as advanced targeting, automated creative generation, and performance optimization—were increasingly helping advertisers achieve better results, boosting demand for its platforms. This performance underscores Meta’s strategic pivot toward AI, which has become central to its long-term growth plan. While the company continues to invest heavily in AI research and infrastructure, the strong ad revenue growth has reassured investors that its technology investments are translating into tangible business outcomes.