Meta Platforms has reported record revenue of $40.6 billion for the third quarter, reflecting a notable 35% increase in profit driven by robust advertising sales and a strong push into artificial intelligence. Despite surpassing Wall Street expectations, user growth fell short, leading the company to project a significant rise in capital expenditures for 2025. The earnings report indicates a bright outlook for the holiday quarter, although analysts are cautious about the upcoming spike in AI costs. Meanwhile, Microsoft also exceeded expectations, bolstered by stronger-than-anticipated cloud growth, adding to the optimism surrounding major tech firms.