Meta Platforms (META US): Earnings Beat, Muse Monetization Shows Initial Success

Meta reported 3Q26 revenue of USD64.6bn (+26% YoY), 2% above VA consensus. Net profit of USD9.9bn missed consensus by 29%, primarily on the USD9.89bn legal settlement charge; excluding this item, net profit beat consensus by 42%. Meta valuation should rely on sustained AI improvements, Muse high-frequency data and commercialization roadmap, alongside disciplined capex, profitability and cash flow. Key takeaways: 1) Muse is expanding user mindshare, but commercialization remains constrained, with applications concentrated in low-frequency, non-essential use cases; 2) AI application penetration could accelerate in 2027, with reliance on intelligence benchmarks and inference costs, though we expect higher industry competition in the personal agent space;