Meta has released its quarterly results with revenue jumping 19% year on year to $40.6 billion USD which is less than what the investors expected.
👉 Background: Meta is the massive $1.4 trillion USD tech company that’s behind the biggest social media platforms. We're talking Facebook, Instagram, Whatsapp and Threads.
👉 What happened: Meta has released its quarterly results with revenue jumping 19% year on year to $40.6 billion USD. But its daily active users increased by only 5%, and this was less than what investors were hoping for. As a result, Meta's shared dropped over 4% in after-hours trading.
👉 What else: Meta also announced that spending on AI and the Metaverse is going to ramp up (again). But it made sure to give serious air-time to the positive outcomes from its investments in AI in its quarterly update.
💡Highlighting success stories is a key way in which companies justify investments to the sharemarket. One thing that stuck out in Meta's quarterly update was the airtime it gave to its AI investments.
💡Meta claims that its AI is on track to be the most-used AI assistant globally with over 500 million monthly active users. And with Meta's capital expenditure expected to reach $50 billion USD in 2025, it's keen to butter up investors with as much AI success stories as it can.
💡Similarly, last week, Microsoft reported a 16% jump in quarterly sales and emphasised that its AI-related products are on track to bring in revenue. After all, investors are becoming eager to see returns from investing in AI companies.
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