Question · Q3 2025
Yousef Squali (Truist Securities) asked CEO Mark Zuckerberg about the profitability of Meta's wearables investment, specifically whether hardware sales alone will recoup costs or if new revenue streams like advertising and commerce on the platform are essential. He also asked CFO Susan Li about the balance between on-balance sheet and off-balance sheet financing for AI initiatives, referencing the Blue Owl data center deal, and its impact on 2026 CapEx and future CapEx growth.
Answer
CEO Mark Zuckerberg stated that Ray-Ban Meta and Oakley Meta Vanguards are performing well and could become very profitable, with revenue from device sales, services, and AI. He expects AI to become the primary use case, driving a highly profitable business once scaled to hundreds of millions or billions of people. CFO Susan Li explained that the Blue Owl joint venture is an example of external capital partnership for data centers, offering long-term optionality. She clarified that future construction costs for this JV will not be recorded as CapEx, with Meta contributing 20% of remaining costs as other investing cash flows.