Meta Surpasses Earnings Estimates, Boosted by Strong Ad Revenue
Key Points:
* Meta Platforms (META) reported Q4 revenue exceeding analyst consensus, growing over 20% year-over-year.
* Net income surged, driven by a 21% increase in advertising revenue.
* The company anticipates Q1 revenue between $39.5 billion and $41.8 billion.
* Meta shares soared 5% during extended trading, reaching a record high for the fifth consecutive session.
AI Investment:
* Meta has significantly increased its spending on AI, allocating $39 billion for 2024.
* Total capital expenditures are expected to reach $60-$65 billion this year.
Regulatory Challenges:
* Meta faces pressure to justify its substantial AI investments.
* Zuckerberg predicts a potential inflection point in 2025 for government relations.
Legal Settlement:
* Meta agreed to settle a lawsuit with former President Donald Trump, resolving a dispute over account suspensions.
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