Facebook owner beats expectations for second quarter revenue
Meta Platforms beat market expectations for second-quarter revenue on Wednesday and issued a rosy sales forecast for the third quarter, signalling that robust digital-ad spending on its social media platforms can cover the cost of its artificial-intelligence investments.
Ms Li and chief executive Mark Zuckerberg said those tools would continue to drive growth in the coming two years, while new generative AI features like chat assistants would take longer to monetize.Drop of The Black Stuff hits the spot for men with sensitive skinShares of social media app Snap, which likewise relies heavily on digital advertising, rose 3 per cent after the Meta report.
Although Meta’s costs rose 7 per cent in the second quarter, its revenue jump topped expense growth substantially and led to a 9-point rise in operating margin, to 38 per cent from 29p. Microsoft said on Tuesday it would spend more money this fiscal year to build out AI infrastructure, while Google parent Alphabet warned last week that its capital spending would stay elevated for the rest of the year.
Debra Aho Williamson, founder of research firm Sonata Insights, said she saw Meta’s results as a “bellwether” for AI stocks. The social media giant also signaled it would continue to spend big on AI infrastructure, anticipating 2024 capital expenditure would come in between $37 billion and $40 billion, up $2 billion at the lower end from its previous forecast of $35 billion to $40 billion.
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