Facebook parent company Meta (META) announced its fiscal third quarter earnings after the closing bell on Wednesday beating analysts' expectations on the top and bottom lines. The company forecasted Q4 revenue of between $45 bill and $48 billion. Analysts were looking for $46.09 billion. The company also said it expects capital expenses to grow "significantly" in 2025.

Shares of the tech giant fell more than 3% following the report.

The social media giant has quickly become an artificial intelligence power in its own right, up there with the likes of Microsoft (MSFT), Google (GOOG, GOOGL), and Amazon (AMZN), and investors are on board for the ride.

Meta stock has shot up 66% year to date and 26% over the last three months. For comparison, Amazon shares are up 25% over the last three months, while Google shares are up 21%. Microsoft’s stock price, meanwhile, is up 15% during the same time period.

For the third quarter, Meta saw earnings per share (EPS) of $6.03 on revenue of $40.5 billion. Wall Street was expecting EPS of $5.25 on revenue of $40.2 billion, according to analyst estimates compiled by Bloomberg. The company saw EPS of $4.50 and revenue of $34.1 billion in the same quarter last year.

Advertising revenue came in at $39.8 billion versus expectations of $39.7 billion, while Meta’s Reality Labs segment, which includes sales of its Quest augmented reality line of headsets, saw revenue of $270 million. Analysts were expecting the business to generate $312 million. The segment also posted a loss of $4.4 billion versus the $4.6 billion analysts had anticipated.

Meta’s AI strategy includes rolling out its Llama family of models across its consumer offerings and advertiser products. It’s also offering the platform as open-source software. To that end, Meta reported that organizations ranging from Accenture (ACN) and DoorDash (DASH) to Goldman Sachs (GS) are using Llama to develop their own AI software.

Meta’s earnings follow a report by The Information that the company is working on its own search functionality for its Meta AI service that will allow users to ask questions and get answers about current events. The goal is to ensure Meta will no longer have to rely on Google's or Microsoft’s search engines to answer certain user queries.

The company is also coming off of a successful Meta Connect conference, during which it debuted a working prototype of its Orion augmented reality glasses. The device, which is still in early development, is meant to serve as a pair of glasses that allow you to speak with other users via holograms projected onto the real world.