The technology giant Meta, which owns Facebook, Instagram, and WhatsApp, has had a positive start to the year with doubled profits and increased income. However, despite this good news, Meta’s stock fell by 18% in after-hours trading due to lukewarm growth forecasts for the next three months.
Meta’s founder and executive president Mark Zuckerberg expressed his satisfaction with the company’s progress, highlighting advances in artificial intelligence with the launch of Llama 3. The company reported 3.24 billion daily active users on their platforms, an increase in ad prices, $58 billion in cash reserves, and a reduced workforce of 69,329 employees.
However, concerns remain about Meta’s AI investments and maintaining growth in advertising revenue. The company faces competition in the AI space from Nvidia. In response to these challenges, Meta has committed to increasing its AI investments to $10 billion, aiming to attract more advertisers and users.
Despite obstacles such as privacy changes and regulatory issues like the proposed ban on TikTok in the US, Meta has demonstrated its commitment to technological innovation with its launch of Llama 3 – a language model that has applications on Instagram and WhatsApp.
As investors keep an eye on Meta’s spending on AI and potential regulatory changes like TikTok ban in US; they remain optimistic about the company’s future due to its strong financial performance and technological advancements position it well for years ahead.
