Meta Q4 Earnings Preview: AI Investments and Cost Reduction Measures
Meta (META) is set to report its Q4 2024 financial results after market close on Wednesday.
Revenue and Earnings Estimates
Analysts forecast Meta's revenue to reach $47 billion in Q4 2024. Net income is projected at $23.3 billion, translating into earnings per share of $6.75.
AI Investments
Meta CEO Mark Zuckerberg has announced plans to invest $60-65 billion in AI capital expenditures in 2025. Zuckerberg aims to establish Meta AI as "the leading assistant serving over 1 billion people" and expects the company's Llama 4 model to become a state-of-the-art solution.
Meta is also working on an "AI engineer" to accelerate code development. Additionally, the company is building a data center with over 2 gigawatts of capacity and expects to deploy 1.3 million GPUs by year-end.
Cost Reduction Measures
In January, Meta announced plans to reduce headcount by 5%, impacting approximately 3,600 jobs. The cuts are reportedly targeting "low-performers" and will be complemented by performance-based reductions.
Other News
Zuckerberg has implemented new company policies, including reduced moderation and removal of fact-checking systems.
Key Takeaways
* Meta's Q4 earnings are expected to show continued revenue growth.
* The company is making significant investments in AI development.
* It is also implementing cost-reduction measures to improve efficiency.
* Recent policy changes have drawn attention to the company's relationship with the Trump administration.