- Facebook Group with jumps in sales and profits
Facebook parent company Meta's advertising business is booming. In the last quarter, the company's revenue surged 22% year-over-year to around $39 billion. Net income jumped 73% to nearly $13.5 billion ($12.44 billion euros).
With this financial cushion, Mark Zuckerberg, founder and CEO, plans to continue investing in artificial intelligence development. He noted that the Meta AI chatbot is on track to become the world's most-used AI assistant by the end of the year, following the release of the company's earnings.
However, achieving these AI goals requires significant investment. Meta's expenses rose 7% last quarter to $24.22 billion. For this year, Meta expects costs to range between $37 and $40 billion, and it's preparing investors for "significant" growth in 2025. Notably, computing power for training AI models is expensive.
The Reality Labs division, which encompasses Meta's virtual worlds and computer glasses business, continues to burn through cash. It reported an operating loss of nearly $4.9 billion, compared to a $3.74 billion loss the previous year. Meanwhile, the business behind apps like Facebook and Instagram generated an operating profit of $19.3 billion last quarter.
Meta's stock rose as much as 4% in after-hours trading.
Given the financial success of Meta and its plans to invest heavily in artificial intelligence, the Commission might recommend further support for technological research and development in their upcoming report. Recognizing Meta's dedication to making their AI chatbot the world's most-used, other tech companies may follow suit, potentially leading to a significant increase in AI-related investments.
