Meta turned in strong Q2 results and issued upbeat guidance. The company plans to continue to invest heavily in AI.
Meta Platforms stock plunged 76% from its all-time high between September 2021 and November 2022. Investors didn't like the company's excessive spending or its sinking earnings, which forced CEO Mark Zuckerberg to make big changes.
Meta Platforms' advertising revenue is expected to show further softness in growth despite a better-than-expected 2Q earnings. Meta AI, powered by Llama 3.1, enhances user engagement and helps ads monetization across its apps. Llama 4, coming next year, will be 10 times more efficient. META's capex remains robust, raising its FY2024 outlook and expecting even higher spending in FY2025, positioning the company more competitively in the current GenAI race.
In the world of artificial intelligence (AI), a battle is underway. On one side are companies that believe in keeping the datasets and algorithms behind their advanced software private and confidential.
Despite its massive reach, Meta Platforms is still expanding.
Thanks to the increased curiosity in ideas like the metaverse, virtual reality (VR) stocks are among the most sought-after investment choices available these days. Reflecting a yearly increase of around 42%, the VR market size is expected to reach about $22.81 billion in 2024 and soar to $131.93 billion by 2029.
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Meta is already using AI to make money. The company has multiple AI efforts underway that could pay off big-time in the future.
Meta Platforms ( META ) reported earnings Wednesday after the close beating analysts' estimate and displaying continued strong growth for both the top and bottom line. Revenues grew 22% YoY, total daily active users (DAUs) grew 7% YoY to 3.27 billion, and the company repurchased $26 billion of shares.
Meta Platforms (META) shares rose Thursday after analysts lifted their price targets for the stock, citing positive signals surrounding the tech giant's artificial intelligence (AI) opportunity.
Needham analyst Laura Martin maintained a Sell rating on Meta stock. She pointed to higher losses at the company's Reality Labs as shares soared Thursday in a down market.
Meta (META) shares jumped on Thursday as the company's second-quarter results eased some of Wall Street's fears about overspending on artificial intelligence.