Meta delivered a seemingly contradictory earnings report for the third quarter of 2026. During the quarter, Meta's single-quarter revenue reached $64.6 billion, a year-on-year increase of 26%, setting a new historical high. Its AI agent application, Muse, achieved 5 million downloads in the United States within just 22 days of its launch, far surpassing similar products, and has preliminarily established a viable business model. Additionally, Muse is set to integrate with the VR glasses business, which is expected to drive improvements in related operations, showing signs of emerging as a super app and demonstrating Meta's potential to compete for the next generation of traffic entry points. However, during the same period, Meta's operating profit margin declined significantly, and free cash flow turned negative. This was primarily due to substantial legal litigation expenses continuing to squeeze profit margins, along with a significant increase in AI-related investments and high capital expenditures, resulting in operating cash flow being unable to cover capital expenditures and a notable increase in debt levels. Alongside the earnings release, Meta also announced a 2-for-1 stock split plan aimed at safeguarding Zuckerberg's control and opening up financing space for continued investments in the AI field. Following the earnings release, Meta's stock price rose slightly in after-hours trading, but the market remains cautious about its AI growth narrative. Although Meta has launched a hit AI product, it has yet to prove that the product can generate sufficient returns, and its turnaround in the AI field is entering a critical stage.