Meta earnings: partnership ads at $15B run rate up 97%, Muse shoppers average $200+ per purchase
RihardJarc · x · 2026-10-22
Key takeaways from Meta's earnings that matter industry-wide, per Rihard Jarc:
- Core business boosted by AI: LLMs lift engagement and targeting, adding a few percentage points of core growth per quarter with compounding effects. Zuck: "we have not yet found the limit of how effectively we can apply compute to accelerating our own core business."
- Influencer economy monetization cracked: Partnership ads grew +97% YoY at a $15B annual run rate, now rolling out more globally.
- Muse as the next big vertical that could disrupt e-commerce: multiple Muses (consumers and small businesses) interacting creates a Facebook-style network effect on top of 3.6B+ users and 500M+ businesses; commerce could shift into agent interactions inside Meta's platforms, with Meta taking a transaction cut. Shopping is already Muse's most common use case: over 1/4 of users shop there with average purchase size above $200. Zuck expects Muse ARPU to exceed the Family of Apps' several hundred dollars annually.
- Costs: Muse burns heavy inference infra today but serving costs should fall significantly over time.
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