Progress Partners on LinkedIn: Meta’s stock plunges on ‘aggressive’ AI spending plans | CNN Business (2024)

𝙀𝙭𝙘𝙞𝙩𝙞𝙣𝙜 𝙉𝙚𝙬𝙨 𝙛𝙧𝙤𝙢 𝙈𝙚𝙩𝙖: 𝙀𝙖𝙧𝙣𝙞𝙣𝙜𝙨 𝘽𝙚𝙖𝙩 𝙀𝙭𝙥𝙚𝙘𝙩𝙖𝙩𝙞𝙤𝙣𝙨 𝙬𝙞𝙩𝙝 𝙎𝙩𝙧𝙤𝙣𝙜 𝙁𝙤𝙧𝙚𝙘𝙖𝙨𝙩 𝙖𝙣𝙙 𝙎𝙝𝙖𝙧𝙚𝙝𝙤𝙡𝙙𝙚𝙧 𝙄𝙣𝙞𝙩𝙞𝙖𝙩𝙞𝙫𝙚𝙨!🔥 𝗠𝗲𝘁𝗮 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 (𝗠𝗘𝗧𝗔) has just announced its fourth-quarter earnings, surpassing analyst estimates both in revenue and earnings per share, sending shares soaring in premarket trading. For the fourth quarter, 𝗠𝗲𝘁𝗮 reported adjusted earnings per share (EPS) of $5.33 on revenue of $40.11 billion, outperforming analyst expectations. This marks a significant increase from the same quarter last year when the company reported revenue of $32.2 billion.In addition to the impressive financial results, 𝗠𝗲𝘁𝗮 has unveiled new initiatives to reward its shareholders. The company has increased its stock buyback authorization by $50 billion and introduced a quarterly dividend of $0.50 per share.Looking ahead, 𝗠𝗲𝘁𝗮 is optimistic about the current quarter, forecasting revenue between $34.6 billion and $37 billion, surpassing analysts' expectations once again.𝗠𝗲𝘁𝗮'𝘀 advertising revenue for the fourth quarter exceeded expectations, reaching $38.7 billion, with the company reporting 2.11 billion Facebook daily active users, higher than Wall Street estimates.Despite these successes, 𝗠𝗲𝘁𝗮'𝘀 Reality Labs division continues to pose challenges, reporting losses of $4.65 billion as it strives to bring Zuckerberg’s vision of the metaverse to life. However, the division exceeded revenue expectations, generating over $1.07 billion.While 𝗠𝗲𝘁𝗮'𝘀 Reality Labs efforts remain important, the company is also making significant investments in generative AI. CEO Mark Zuckerberg recently announced the company's long-term strategy to develop general artificial intelligence, aiming to make it open source.Looking into 2024, 𝗠𝗲𝘁𝗮 anticipates total expenses of $94 billion-$99 billion, with increased investments in AI-related roles. Despite challenges, Meta's market performance has been impressive, with shares skyrocketing 121% over the last 12 months, outperforming major tech giants like Apple, Google, Microsoft, and Amazon.Stay tuned for more updates as 𝗠𝗲𝘁𝗮 continues to innovate and shape the future of technology!#Meta #Earnings #Technology #Innovation #Investing

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Meta’s $200 BillionSurge Is Biggest in Stock-Market History “Meta’s AI artificial intelligence pipeline for both users and advertisers is robust, with more tools set to launch and scale throughout ‘24” : Stock also holds record for the biggest wipeout in history : Shares surge after big earnings beat, buyback, dividend plans ---- generative artificial intelligence ---

Shares of Meta sank 13% on Thursday, sparking a selloff in big technology stocks after the social media firm signaled its costly bet on AI could take years to pay off.The drop was set to erase nearly $170 billion from the company's market value and triggered a fall of 3% to 4.2% in shares of AI-focused Microsoft, Google and advertising-reliant Snap Inc.Meta CEO Mark Zuckerberg, who floored Wall Street last year with his cost-cutting drive, said on a post-earnings call that costs would grow "meaningfully" over the coming years before the company makes "much revenue" from some of its AI products.That stoked investor fears that Zuckerberg was plunging Meta into another costly endeavor at a time when its augmented and virtual reality business was losing billions of dollars each quarter.Meta forecast April-June revenue below estimates and raised the bottom end of its 2024 total expense forecast by $2 billion on Wednesday. It also raised the top end of its capital expenditure view as it invests in data centers essential to its efforts to catch up with AI frontrunners OpenAI and Microsoft.The stock has a 12-month forward price-to-earnings ratio of about 23.12, compared with Microsoft's 31.17 and Alphabet's 22.07. It has gained nearly 40% so far this year, comfortably above the benchmark S&P 500 index's (.SPX).#meta #ai #revenue #earnings #techhttps://lnkd.in/ePw4cF9i

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Zuckerberg gets bullish on AI as Meta’s stock rides the AI wave 🚀Has anyone had a better 12 months than Mark Zuckerberg? After Meta’s stock price crashed to a low of almost $90 in late 2022, the company recently announced bumper quarterly results that shot its stock to a record high of $451 after markets closed, elevating its market capitalization by $148 billion to $1.16 trillion.But Zuckerberg sounds like he’s just getting started. Meta’s CEO struck a bullish tone as he outlined his vision for the future of Meta’s AI products and services.Tech giants have been competing for access to Nvidia's limited supply of chips to power their AI models for several months. However, these chips are quite expensive, with a price tag of up to $30,000 each. Despite the high cost, Meta is determined to emerge as the winner in this race.On top of the 6,000,000 high-end chips (or equivalent) that Meta plans to secure by the end of the year, the company is also reportedly on course to deploy its in-house chip called Artemis, which will reduce Meta’s dependency on Nvidia and potentially save the company billions in chip and energy costs.The world's largest social media company is investing heavily in new data centers designed specifically for AI computing, likely built to accommodate its new AI chips.From its open-source AI models to AI-powered sunglasses and celebrity chatbots, the company behind Facebook and Instagram has positioned itself as an AI powerhouse. In a sign of growing confidence, Meta recently announced its first-ever stock dividend of $0.50 per share and an additional $50 billion in share repurchases, potentially signalling that the company expects its stock price to grow further in the coming months.What do you think of Meta's AI ambitions? Do you agree with Zuckerberg's vision for the future? Let us know in the comments below 👇 #AI #Meta #TechInnovation #MarkZuckerberg #Nvidia #GenerativeAI #TechIndustryImage source: Bloomberg

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Despite posting record revenue for the January-March quarter, Meta’s stock is being bogged down on Wednesday by the company’s increasing investments in AI.Meta reported a 27% year-over-year increase with $36.46 billion in sales for Q1, beating analysts’ forecasts.Yet, shares for Meta tumbled about 16% after trading hours on Wednesday following the company’s first-quarter results.https://lnkd.in/ejk9drf7

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Has anyone seen a more impressive 12 months than Mark Zuckerberg? Meta's CEO has been on a roll, announcing bumper quarterly results that have shot the company's stock to a record high of $451. The market capitalization has soared by $148 billion to $1.16 trillion. While this achievement is impressive, Zuckerberg is not resting on his laurels. He has outlined his vision for the future of Meta's AI products and services, which is set to revolutionize the tech industry.Meta is playing to win in the race for access to Nvidia's limited supply of chips needed to power AI models. The company plans to secure 600,000 high-end chips (or equivalent) by the end of the year. Moreover, the company is reportedly on course to deploy its in-house chip called Artemis, which will reduce Meta's dependency on Nvidia and could potentially save the company billions in chip and energy costs.To further solidify its position as an AI powerhouse, Meta is investing aggressively in new data centers with advanced designs optimized for AI compute, presumably built to house its new AI chips. From its open-source AI models to AI-powered sunglasses and celebrity chatbots, the company behind Facebook and Instagram is leading the charge in AI innovation.In a sign of growing confidence, Meta has announced its first-ever stock dividend of $0.50 per share and an additional $50 billion in share repurchases, potentially signaling that the company expects its stock price to grow further in the coming months. It's an exciting time for Meta, and the future looks bright for the company and its investors. What are your thoughts on where Meta's stock price will be in December 2024.

Meta's $200 Billion Surge Is Biggest In Stock-Market History: An anonymous reader quotes a report from Bloomberg: Meta is poised to become Wall Street's top comeback kid. It was only a couple of years back the Facebook owner suffered the single biggest market value destruction in stock-market history. But the company has come a long way since then, on Thursday it dazzled shareholders with yet another impressive quarterly earnings report as the social media giant focuses on cutting back costs and shoring up billions in profits. The stock rose as much as 21% Friday, poised to add roughly $200 billion to its market capitalization. This would be the biggest single-session market value addition, eclipsing the $190 billion gains made by Apple and Amazon in 2022."Solid execution, faster growth, and increased capital structure efficiency improve the outlook from here," Brian Nowak, an analyst at Morgan Stanley, wrote in a note Friday. "Meta's AI pipeline for both users and advertisers is robust, with more tools set to launch and scale throughout '24," he added. Meta, which reduced headcount by 22% in 2023, unveiled plans for a $50 billion stock buyback, and announced its first quarterly dividend on Thursday, a sign to investors that it has money to spare and a reason for them to stick around. While the company is making big cost cuts, it continues to spend aggressively on artificial intelligence advancements, namely in generative AI but also on the background technologies to help feed its social media products and power its ad targeting.Read more of this story at Slashdot.

Meta's $200 Billion Surge Is Biggest In Stock-Market History: An anonymous reader quotes a report from Bloomberg: Meta is poised to become Wall Street's top comeback kid. It was only a couple of years back the Facebook owner suffered the single biggest market value destruction in stock-market history. But the company has come a long way since then, on Thursday it dazzled shareholders with yet another impressive quarterly earnings report as the social media giant focuses on cutting back costs and shoring up billions in profits. The stock rose as much as 21% Friday, poised to add roughly $200 billion to its market capitalization. This would be the biggest single-session market value addition, eclipsing the $190 billion gains made by Apple and Amazon in 2022."Solid execution, faster growth, and increased capital structure efficiency improve the outlook from here," Brian Nowak, an analyst at Morgan Stanley, wrote in a note Friday. "Meta's AI pipeline for both users and advertisers is robust, with more tools set to launch and scale throughout '24," he added. Meta, which reduced headcount by 22% in 2023, unveiled plans for a $50 billion stock buyback, and announced its first quarterly dividend on Thursday, a sign to investors that it has money to spare and a reason for them to stick around. While the company is making big cost cuts, it continues to spend aggressively on artificial intelligence advancements, namely in generative AI but also on the background technologies to help feed its social media products and power its ad targeting.Read more of this story at Slashdot.

Meta's $200 Billion Surge Is Biggest In Stock-Market History: An anonymous reader quotes a report from Bloomberg: Meta is poised to become Wall Street's top comeback kid. It was only a couple of years back the Facebook owner suffered the single biggest market value destruction in stock-market history. But the company has come a long way since then, on Thursday it dazzled shareholders with yet another impressive quarterly earnings report as the social media giant focuses on cutting back costs and shoring up billions in profits. The stock rose as much as 21% Friday, poised to add roughly $200 billion to its market capitalization. This would be the biggest single-session market value addition, eclipsing the $190 billion gains made by Apple and Amazon in 2022."Solid execution, faster growth, and increased capital structure efficiency improve the outlook from here," Brian Nowak, an analyst at Morgan Stanley, wrote in a note Friday. "Meta's AI pipeline for both users and advertisers is robust, with more tools set to launch and scale throughout '24," he added. Meta, which reduced headcount by 22% in 2023, unveiled plans for a $50 billion stock buyback, and announced its first quarterly dividend on Thursday, a sign to investors that it has money to spare and a reason for them to stick around. While the company is making big cost cuts, it continues to spend aggressively on artificial intelligence advancements, namely in generative AI but also on the background technologies to help feed its social media products and power its ad targeting.Read more of this story at Slashdot.

Shares of Meta Platforms, sank 13% on Thursday, sparking a selloff in big technology stocks after the social media firm signaled its costly bet on AI could take years to pay off.The drop was set to erase nearly $170 billion from the company's market value and triggered a fall of 3% to 4.2% in shares of AI-focused Microsoft, and Alphabet, both of which report earnings after market close.With Aditya Soni and Siddarth Shttps://lnkd.in/gGtiqAiu

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