(Bloomberg) – Buried in a dismal earnings report from Meta Platforms Inc. That’s good news – not for parent company Facebook.
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Shares of data center companies rose after Meta Platforms said it plans to spend more on components next year as it invests in infrastructure to help drive experiences. Immersive digital.
In its third-quarter earnings report, Meta Platforms projected capital expenditures of $34 billion to $39 billion in 2023, growing from $30 billion to $34 billion this year. The comments brought Nvidia Corp. and Marvell Technology Inc. more than 3% increase in after-sales transaction.
Arista Networks Inc., which makes networking equipment used in data centers and counts Meta as one of its biggest customers, grew more than 7%.
“Amid growing questions/concerns that Meta will significantly reduce their future equity guidance along with third quarter results,” said Wells Fargo analysts led by Aaron Rakers. , we’re the exact opposite tonight,” said Wells Fargo analysts led by Aaron Rakers.
While Meta’s spending plans are a boon for its suppliers, it has been questioned by investors about the high costs associated with its strategic shift. Shares fell 14% after the company forecast weaker-than-expected sales for the current quarter.
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