Meta's Q4 Earnings Preview: AI Investments and Layoffs
Key Metrics Expected:
* Revenue: Estimated $47 billion
* Net income: Estimated $23.3 billion
* Earnings per share: Estimated $6.75
AI Expansion:
* Meta to invest $60-$65 billion in AI capital expenditures in 2025.
* Plans to develop "leading assistant" serving over 1 billion people by 2025.
* Investing in Llama 4, an advanced language model.
* Building a "data center with a capacity of more than two gigawatts" to support AI expansion.
Layoffs and Performance:
* Meta to reduce headcount by 5% (3,600 employees).
* Cuts targeting "low-performers" scheduled for replacement later in 2023.
* Chief executive Mark Zuckerberg emphasizes performance-based cuts during current cycle.
Policy Changes:
* Meta introduces new policies, including reductions in moderation and discontinuation of the fact-checking system.
* Zuckerberg reportedly aligns more closely with the Trump administration.