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# Metas Financial Results Outperform Projections, with Substantial AI Expenditure Surge
Meta Platforms (META) unveiled its fourth-quarter financial statement, surpassing market analysts’ forecasts, with revenue expansion exceeding 20%.
The corporation projects first-quarter revenue to range from $39.5 billion to $41.8 billion, while analysts’ predictions hovered around $41.65 billion. Meta highlighted advancements in its AI projects, with advertising income escalating almost 21% to $46.78 billion, exceeding the anticipated $45.46 billion. Net earnings hit $20.84 billion, or $8.02 per share, up from $14.02 billion, or $5.33 per share, in the corresponding period last year, also exceeding expectations. The social media and tech behemoth’s fourth-quarter revenue totaled $48.39 billion, exceeding the consensus analyst estimate compiled by Visible Alpha.
Meta’s stock value increased nearly 2% in after-hours trading on Wednesday. As of Wednesday’s close, it had climbed approximately 73% over the past year, achieving a new peak for the fifth consecutive trading session.
## Meta is Boosting Investment in the AI Sector
Meta declared its intention to allocate $60 billion to $65 billion in capital outlays this year to broaden its AI operations, with spending of $39 billion in 2024, up from $28 billion in 2023. Coinciding with the release of the financial report, the enterprise is escalating spending to bolster its aspirations in the AI domain.
This matter is especially significant, as the influence of low-cost models from Chinese rivals on the market intensified the instability of the technology sector earlier this week. Meta, akin to numerous of its tech giant counterparts, confronts considerable pressure to demonstrate that the billions of dollars invested in AI are justified. CEO Mark Zuckerberg stated: “We persist in making positive strides in AI, glasses, and the future of social media, and I am enthusiastic to observe these endeavors further expand in 2025.”
Furthermore, according to a Wall Street Journal report released on Wednesday, Meta consented to disburse millions of dollars.
Meta, the firm which possesses Facebook, Instagram, including WhatsApp. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
