{"id":36186,"title":"Meta Accelerates AI Investment Plans as Quarterly Profits Soar Past Expectations","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-10-31T08:53:02+00:00","modified":"2024-10-31T08:53:02+00:00","canonical_url":"https://stockmark.it/meta-accelerates-ai-investment-plans-as-quarterly-profits-soar-past-expectations/","markdown_url":"https://stockmark.it/meta-accelerates-ai-investment-plans-as-quarterly-profits-soar-past-expectations.md","json_url":"https://stockmark.it/meta-accelerates-ai-investment-plans-as-quarterly-profits-soar-past-expectations.json","category":"AI","categories":["AI","Artificial intelligence","Meta"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2023/01/meta-sm.jpg?fit=480%2C270&quality=89&ssl=1","format":"news","language":"en-GB","content":"Meta’s substantial investments in artificial intelligence are demonstrating “strong momentum” according to Mark Zuckerberg, as the tech giant’s quarterly revenue and earnings exceeded Wall Street’s predictions. The company’s chief executive signalled that AI-related expenditure is set to climb significantly into 2025.\n\nShare prices responded cautiously to Wednesday’s earnings announcement, dipping 3% in after-hours trading, despite Meta’s impressive 70% value increase since the year’s beginning. Investors’ concerns centred on the company’s projection of “significant” capital expenditure growth for 2025, driven by costly AI infrastructure investments.\n\nThe social media behemoth reported a 19% revenue surge to $40.6 billion, marginally surpassing analysts’ expectations of $40.3 billion. Net income demonstrated remarkable growth, jumping 35% to $15.7 billion, considerably above the predicted $13.6 billion. The company’s family of apps witnessed a 5% rise in daily active users, reaching 3.3 billion.\n\nZuckerberg emphasised AI’s positive impact on core platforms, noting that AI-driven feed and video recommendations had boosted user engagement, with time spent on Facebook and Instagram increasing by 8% and 6% respectively. The company’s AI chatbot, Meta AI, has seen growing adoption rates, while its open-source large language model, Llama, continues to gain traction among businesses and developers.\n\nReality Labs, Meta’s virtual and augmented reality division, posted $270 million in revenues but recorded substantial operating losses of $4.4 billion. The company expects these losses to “increase meaningfully” year over year, highlighting the ongoing cost of innovation in the metaverse space.\n\nLooking ahead, Meta projects fourth-quarter sales between $45 billion and $48 billion, with capital expenditure guidance for 2024 raised to $38-40 billion. This increase reflects the company’s commitment to expanding its AI infrastructure despite the considerable associated costs."}