Meta Delivers Strong Q4 Performance, Plans Massive AI Investment
Meta Platforms, the parent company of Facebook and Instagram, reported impressive financial results for the fourth quarter of 2024, marking a significant close to the year.
Key Metrics:
* Revenue: $48.39 billion, up 21% year-over-year
* Net income: $20.84 billion, up 49% year-over-year
* Earnings per share: $8.02, exceeding analysts' estimates of $6.76
AI and Capital Spending:
Meta announced plans to significantly increase capital spending in 2025, primarily aimed at AI-related initiatives. CEO Mark Zuckerberg emphasized the company's progress in AI, glasses, and the future of social media.
User Growth:
The average daily user base across Meta's platforms reached 3.35 billion in December 2024, representing a growth from 3.29 billion in the previous quarter.
Financial Outlook:
While Meta did not provide revenue guidance for 2025, it expects revenue for Q1 2025 to range from $39.5 billion to $41.8 billion, implying growth of 8%-15% year-over-year.
Political Affiliations:
Recent developments suggest that Zuckerberg may be seeking to bolster ties with former President Trump, who has been critical of Meta in the past. Meta appointed UFC CEO Dana White, a close Trump associate, to its board and donated $1 million to Trump's inauguration fund.
Additional Initiatives:
Meta is experimenting with ads in Threads, its social platform inspired by Twitter, in the US and Japan.