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Meta Reports Strong Q2 Earnings Amid Heavy AI Spending
2024-07-31 23:55:08

Meta Reports Strong Q2 Earnings Amid Heavy AI Spending

Meta, the parent company of Facebook and Instagram, has reported strong Q2 earnings, surpassing revenue and EPS expectations. The company is heavily investing in AI, including Meta AI, Ray-Ban Meta AI glasses, and the Llama 3.1 405B model, with the goal of becoming the most used AI assistant by the end of the year.

Meta also announced lower-than-expected capital expenditures and expects AI investments to drive growth in 2025. However, the company is facing legal challenges, including a $1.4 billion settlement in a Texas privacy lawsuit. Despite this, analysts view Meta as an AI 'bellwether' due to its expertise in digital advertising.

CEO Mark Zuckerberg emphasized Meta's focus on open-source AI and discussed the company's Reality Labs division. While Meta's AI advancements have not been without issues, the company remains committed to investing in AI for its future success.

Related news on that topic:

Meta's Profits Skyrocket as Shares Surge

Meta, the tech giant formerly known as Facebook, has reported a staggering $13.5 billion profit, causing its shares to soar by 7%. Meta's CEO, Mark Zuckerberg, has also announced that Meta AI is on track to become the top digital assistant by 2023. While other tech giants have disappointed with their results, Meta's success has had a positive impact on Wall Street. To further accelerate progress in research, Meta is investing in data centers and open-source AI. Despite its losses of $4.5 billion in the metaverse in Q2, Meta's revenue has seen a 22% increase to $49 billion. The company plans to increase its capital expenditure on AI in 2025. Meta's future plans also include the development of a metaverse ecosystem. Moreover, Meta has revealed that India is its largest market for Meta AI usage, with its AI chatbot experiencing massive usage thanks to WhatsApp's 500 million users in the country.

Meta's Profit Boosts Shares Amid AI Advancements and Strategic ... Investments

Meta's impressive $13.5 billion profit sparks a 7% surge in shares. CEO Zuckerberg outlines plans for Meta AI as a top assistant by 2023. Despite disappointing results from other tech giants, Meta's strategic focus on data centers and open-source AI accelerates research progress. The company's positive earnings report, coupled with warnings of significant spending expansion, reflect a complex financial outlook. Wall Street closely monitors Meta's AI investments and promotion of open-source models. Analysts raise price targets, citing massive AI investments and growth in global active users. However, Bitcoin Miner Marathon faces challenges as its revenue misses estimates. Zuckerberg highlights Meta's future roadmap, including Threads social app and upcoming AI products. Meta's ambitious plans for its next-generation Llama 4 AI model involve significant compute resources and partnerships with key tech firms.

Read 22 more recent news on this topic

The press radar on this topic:

Yahoo Finance
30. Juli 2024 um 18:04

Meta to report second quarter earnings with ad sales, AI spending top of mind

Economy
Technology
Finance
Meta, parent of Facebook and Instagram, will report Q2 earnings. Analysts expect EPS of $4.74 on revenue of $38.3 billion. They will focus on Meta's AI spending, including its new Llama 3.1 language model, and its advertising business, which is expected to see growth in the Family of Apps revenue to $37.7 billion. Meta's Reality Labs segment, which develops metaverse tech, is also expected to be discussed, as is the company's focus on open-source AI and the $1.4 billion settlement with Texas o..
New York Times - Technology
31. Juli 2024 um 22:03

Meta Says It Will Continue Spending, as Growth Surges

Economy
Technology
Finance
Meta increases annual spending to $37-$40B for AI and metaverse, after abandoning AI chatbot project; revenue and profit surge in Q2 as ad business stays strong; Microsoft, Alphabet also boost AI investments; Meta shares rise 5% after-hours.
Yahoo Finance
31. Juli 2024 um 20:12

Meta beats Q2 expectations, but warns of 'significant' cap-ex expansion in 2025

Economy
Technology
Finance
Meta beat Q2 estimates but warned of rising 2025 capex. Its Family of Apps and Reality Labs segments saw mixed results. The company settled a $1.4B biometric data case with Texas and released Llama 3.1, with Zuckerberg advocating for open-source AI.
Yahoo Finance
31. Juli 2024 um 20:07

Facebook parent Meta forecasts upbeat Q3 revenue after strong quarter

Economy
Technology
Finance
Meta Platforms beat Q2 revenue, forecasts upbeat Q3; investing heavily in AI infrastructure; updating ad-buying products with AI tools and short video formats; Llama 3 release shows performance gains; Microsoft-backed OpenAI seen as industry leader; Meta releasing free AI models to undercut rivals' business models.
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