Meta Platforms Inc. posted sharply higher profit and revenue for its fourth quarter on Wednesday, thanks to higher ad revenue on its social media properties, sending its shares up in after-hours trading even as it forecast increasing expenses on its artificial intelligence efforts.
CEO Mark Zuckerberg said he expects 2025 to “be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant.”
The Menlo Park, California-based company earned $20.83 billion, or $8.02 per share, in the October-December quarter. That’s up 49% from $14.02 billion, or $5.33 per share, in the same period a year earlier.
Revenue grew 21% to $48.39 billion from $40.11 billion.
Analysts, on average, were expecting earnings of $6.76 per share on revenue of $47 billion, according to a poll by FactSet.
“We continue to make good progress on AI, glasses, and the future of social media,” Zuckerberg said in a statement.
For the current quarter, Meta said expects revenue of $39.5 billion to $41.8 billion. Analysts are expecting revenue at the high end of that range—$41.68 billion.
The company also said it expects expenses in the range of $114 billion to $119 billion, driven by infrastructure costs and employee compensation. Meta had 74,067 employees as of December 31, up 10% from a year earlier.
“Meta’s Q4 performance underscores the company’s resilience in a still-uncertain digital ad market. By beating both earnings and revenue estimates, they’ve demonstrated that cost discipline and efficiency gains are paying dividends,” said Jesse Cohen, an analyst with Investing.com. “However, the real headline is their commitment to aggressive capital expenditures. This signals Meta is doubling down on its AI infrastructure and metaverse ambitions, even as investors grapple with the costs.”
Separately, Meta has agreed to pay roughly $25 million to settle a 2021 lawsuit that President Donald Trump brought against the company and Zuckerberg after Trump’s accounts were suspended following the January 6, 2021, attack on the U.S. Capitol.
“This is also going to be a big year for redefining our relationship with governments,” Zuckerberg said in a conference call with analysts. “We now have a U.S. administration that is proud of our leading companies, prioritizes American technology winning, and that will defend our values and interests abroad. And I’m optimistic about the progress and innovation this is going to unlock.”
Meta’s stock rose $13.53, or 2%, to $690.02 in after-hours trading.
—Barbara Ortutay, AP Technology Writer
Login to add comment
Other posts in this group
In May of 1995, the video game industry hosted its first major trade show. Electronic Entertainment Expo (E3) was designed to shine a spotlight on games, and every major player wanted to stand in
Robinhood cofounder and CEO Vlad Tenev channeled Hollywood glamour last month in Cannes at an extravagantly produced event unveiling of the trading platform’s newest products, including a tokenize
In the mid-1990s, Hollywood began trying to envision the internet (sometimes called the “information superhighway”) and its implications for life and culture. Some of its attempts have aged better
Ever since AI chatbots arrived, it feels as if the media has been on the losing end o
Aside from the obvious, one of the best parts of the work-from-home revolution is being able to outfit your workspace as you see fit.
And if you spend your days squinting at a tiny lapto
Child psychologists tell us that around the age of five or six, children begin to seriously contemplate the world around them. It’s a glorious moment every parent recognizes—when young minds start
During January’s unprecedented wildfires in Los Angeles, Watch Duty—a digital platform providing real-time fire data—became the go-to app for tracking the unfolding disaster and is credit
