Shulou(Shulou.com)11/24 Report--

Sina Technology News Beijing time on October 27 morning news, it is reported that the US social networking giant Meta released its third-quarter results and announced that it will continue to invest in digital infrastructure next year to support the development of meta-universe and immersion experience strategy, and the company will also invest more capital to buy equipment and hardware. The news led to a rise in the share prices of manufacturers that supply data center equipment to Meta.

Meta forecasts that corporate capital expenditure will be between $34 billion and $39 billion in 2023, up from $34 billion this year. In after-hours trading in US stocks, good news from Meta sent shares of companies such as Nvidia and Marvell up more than 3 per cent.

Arista Networks mainly produces network equipment for data centers, and Meta is also the company's main purchasing customer. Stimulated by the positive, the company's share price soared 7% in after-hours trading.

Aaron Rakers, an analyst at Wells Fargo, said in an analysis that there had been concerns that Meta might slash capital spending in the future, along with unsatisfactory third-quarter results, but the opposite good news was heard on Wednesday.

The news of the start of Meta's capital increase is undoubtedly a good boost for the company's suppliers, but it is not good news for Meta investors, who are worried that Meta's strategic transformation towards the meta-universe concept will bring considerable economic costs. In addition to the increase in capital spending, Meta's earnings report showed that its current fourth-quarter earnings outlook was lower than Wall Street analysts had expected, causing Meta's own shares to tumble 14% in after-hours trading.

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