Meta, the parent company of Facebook, Instagram, and WhatsApp, reported strong financial results for the third quarter, exceeding expectations for both net income and revenue. The company’s net profit surged by 35% to $15.7 billion, while revenue increased by 19% to $40.6 billion.
Despite these positive figures, Meta’s stock price declined in after-hours trading due to concerns about increased investment in artificial intelligence (AI) and continued losses in its Reality Labs division, focused on virtual and augmented reality.
Mark Zuckerberg, Meta’s founder and CEO, emphasized the company’s commitment to significant AI investments, though the final budget is yet to be determined. This strategic move aligns with the broader industry trend of major tech companies accelerating their AI initiatives to diversify revenue streams beyond traditional social media advertising.
Meta’s recent focus on AI has led to the development of chatbots across its platforms and advancements in ad technology. The company’s increased capital investment outlook for 2024, now projected to be between $38 and $40 billion, underscores its dedication to AI innovation.
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