Meta Platforms Inc. Q3 2026 Earnings Recap

Meta fell 7.0% after earnings, with investors likely focused on the cost and execution risk of scaling Muse: management said the product is currently compute-intensive and profitable economics depend on a more than 10x improvement in compute efficiency over the next year, alongside revenue scaling. The transcript also offers no concrete near-term revenue contribution or timeline for Muse.

Key Takeaways

• Meta said its Family of Apps reached 3.64 billion daily users, with all-time-high engagement on Facebook and Instagram, driven by video growth.
• Muse has attracted more than 10 million users in the US and Canada in about six weeks; roughly 25% of users who set it up use it on a given day.
• Shopping is Muse’s most common use case: more than 25% of users engage in it, with an average purchase size above $200. Management did not disclose revenue generated from these transactions.
• Muse is currently very compute-intensive. Meta expects to improve compute efficiency by more than 10x over the next year and says Muse can become profitable once its revenue streams reach scale.
• Meta plans to offer Muse free to most users, with potential revenue from transaction fees, subscriptions, and business services; management said monetization will take time.