Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg just declared that 2025 will be a defining year for artificial intelligence.
Mere days away from social media giant Meta Platforms Inc. META releasing its earnings results for the fourth quarter, the overall ambiance appears optimistic. Currently, Wall Street analysts rate META stock as a Buy with a consensus price target of just over $666.
Meta Platforms (META) is set to report its fourth-quarter results after the closing bell Wednesday, with analysts largely bullish on the tech giant's ability to build on a strong 2024 as its AI investments show some signs of paying off.
Meta's shares have surged 11.70% in three months, driven by strong AI investments, particularly in their Meta ads division. Despite concerns about the new DeepSeek model, I believe it presents a net positive opportunity for Meta to reduce CapEx and increase efficiency. Analysts are optimistic about Meta's Q4 earnings, with significant EPS and revenue growth expected, supported by upward revisions.
Vice President JD Vance, who was backed by PayPal co-founder Peter Thiel, has voiced his concerns about the influence of big tech companies, asserting that these companies wield “too much power.” What Happened: Speaking on “Face the Nation with Margaret Brennan” on Saturday, Vance was asked about the prominent presence of tech leaders at Donald Trump’s inauguration. This included names like Meta Platforms, Inc.’s META Mark Zuckerberg, Amazon.com, Inc.’s AMZN Jeff Bezos, Tesla Inc.’s TSLA Elon Musk, Apple Inc.’s AAPL Tim Cook, and Alphabet Inc.’s GOOG GOOGL Sundar Pichai. To illustrate his point, the Vice President noted that the tech leaders did not receive preferential seating over his mother or other supporters. “We believe fundamentally that big tech does have too much power.” See Also: Nvidia Stock Slides Overnight On Robinhood As China’s DeepSeek Sparks Doubts Over GPU Spending Frenzy — Chamath Palihapitiya Highlights Report Indicating AI Holy Grail Cracked He stressed the importance of tech companies respecting constitutional rights and halting censorship and cautioned that Trump’s administration would not look kindly on non-compliance. Why It Matters: The tech sector played a crucial role in Trump’s 2024 election victory, with Musk investing significantly in support of Trump and other Republicans. Trump appointed Musk to lead a new agency focused on reducing federal spending. Other tech leaders also engaged with Trump, visiting Mar-a-Lago before the inauguration. Vance has been vocal about his desire to break up large tech companies, particularly Google's parent company Alphabet. Interestingly, the Vice President had a powerful Silicon Valley backer in the share of Thiel who has also funded his 2022 Ohio campaign with $15 million. Image via Shutterstock
Investors have enjoyed a decent start to 2025 as the major stock market indexes have advanced in unison so far. As of this writing, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average are up 2.9%, 2.3%, and 3.6%, respectively.
Recent advances in artificial intelligence (AI) hold the potential to unlock billions of dollars in value for businesses through more effective and efficient work assisted by AI. Some of the biggest early winners in AI are the companies that make it possible to develop and train large language models, the core technology behind generative AI.
Meta is offering deals to creators to promote Instagram on other short-form video apps, including TikTok, Snapchat and YouTube, CNBC has learned. The contract also requires three months of posting exclusivity on Instagram's Reels short-form video product before the creator can post content elsewhere.
Meta's $60 billion AI investment for 2025 mirrors past overspending on Reality Labs, risking questionable returns and monetization challenges. Despite Reality Labs' losses, Meta's revenue grew 10% YoY, driven by its ads business, which remains 99+% of revenue. Mark Zuckerberg's control and diverse interests could impact Meta's future investment decisions, posing a significant risk.
Facebook parent Meta has begun testing ads on its newest social network Threads, an executive announced Friday, as the company continues to grow its alternative to Elon Musk's X.
Meta begins testing ads on Threads, aiming to monetize its X competitor launched in 2023. The ad rollout comes amid TikTok's challenges and advertisers' concerns with X.
Meta Platforms (META) CEO Mark Zuckerberg said the company plans to invest $60 billion to $65 billion in capital expenditures this year, up from an estimated $38 billion to $40 billion in 2024, as the tech giant expands its artificial intelligence efforts.