Progress Partners on LinkedIn: Meta’s stock plunges on ‘aggressive’ AI spending plans | CNN Business (2024)

𝙀𝙭𝙘𝙞𝙩𝙞𝙣𝙜 𝙉𝙚𝙬𝙨 𝙛𝙧𝙤𝙢 𝙈𝙚𝙩𝙖: 𝙀𝙖𝙧𝙣𝙞𝙣𝙜𝙨 𝘽𝙚𝙖𝙩 𝙀𝙭𝙥𝙚𝙘𝙩𝙖𝙩𝙞𝙤𝙣𝙨 𝙬𝙞𝙩𝙝 𝙎𝙩𝙧𝙤𝙣𝙜 𝙁𝙤𝙧𝙚𝙘𝙖𝙨𝙩 𝙖𝙣𝙙 𝙎𝙝𝙖𝙧𝙚𝙝𝙤𝙡𝙙𝙚𝙧 𝙄𝙣𝙞𝙩𝙞𝙖𝙩𝙞𝙫𝙚𝙨!🔥 𝗠𝗲𝘁𝗮 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 (𝗠𝗘𝗧𝗔) has just announced its fourth-quarter earnings, surpassing analyst estimates both in revenue and earnings per share, sending shares soaring in premarket trading. For the fourth quarter, 𝗠𝗲𝘁𝗮 reported adjusted earnings per share (EPS) of $5.33 on revenue of $40.11 billion, outperforming analyst expectations. This marks a significant increase from the same quarter last year when the company reported revenue of $32.2 billion.In addition to the impressive financial results, 𝗠𝗲𝘁𝗮 has unveiled new initiatives to reward its shareholders. The company has increased its stock buyback authorization by $50 billion and introduced a quarterly dividend of $0.50 per share.Looking ahead, 𝗠𝗲𝘁𝗮 is optimistic about the current quarter, forecasting revenue between $34.6 billion and $37 billion, surpassing analysts' expectations once again.𝗠𝗲𝘁𝗮'𝘀 advertising revenue for the fourth quarter exceeded expectations, reaching $38.7 billion, with the company reporting 2.11 billion Facebook daily active users, higher than Wall Street estimates.Despite these successes, 𝗠𝗲𝘁𝗮'𝘀 Reality Labs division continues to pose challenges, reporting losses of $4.65 billion as it strives to bring Zuckerberg’s vision of the metaverse to life. However, the division exceeded revenue expectations, generating over $1.07 billion.While 𝗠𝗲𝘁𝗮'𝘀 Reality Labs efforts remain important, the company is also making significant investments in generative AI. CEO Mark Zuckerberg recently announced the company's long-term strategy to develop general artificial intelligence, aiming to make it open source.Looking into 2024, 𝗠𝗲𝘁𝗮 anticipates total expenses of $94 billion-$99 billion, with increased investments in AI-related roles. Despite challenges, Meta's market performance has been impressive, with shares skyrocketing 121% over the last 12 months, outperforming major tech giants like Apple, Google, Microsoft, and Amazon.Stay tuned for more updates as 𝗠𝗲𝘁𝗮 continues to innovate and shape the future of technology!#Meta #Earnings #Technology #Innovation #Investing

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Meta’s $200 BillionSurge Is Biggest in Stock-Market History “Meta’s AI artificial intelligence pipeline for both users and advertisers is robust, with more tools set to launch and scale throughout ‘24” : Stock also holds record for the biggest wipeout in history : Shares surge after big earnings beat, buyback, dividend plans ---- generative artificial intelligence ---

Zuckerberg gets bullish on AI as Meta’s stock rides the AI wave 🚀Has anyone had a better 12 months than Mark Zuckerberg? After Meta’s stock price crashed to a low of almost $90 in late 2022, the company recently announced bumper quarterly results that shot its stock to a record high of $451 after markets closed, elevating its market capitalization by $148 billion to $1.16 trillion.But Zuckerberg sounds like he’s just getting started. Meta’s CEO struck a bullish tone as he outlined his vision for the future of Meta’s AI products and services.Tech giants have been competing for access to Nvidia's limited supply of chips to power their AI models for several months. However, these chips are quite expensive, with a price tag of up to $30,000 each. Despite the high cost, Meta is determined to emerge as the winner in this race.On top of the 6,000,000 high-end chips (or equivalent) that Meta plans to secure by the end of the year, the company is also reportedly on course to deploy its in-house chip called Artemis, which will reduce Meta’s dependency on Nvidia and potentially save the company billions in chip and energy costs.The world's largest social media company is investing heavily in new data centers designed specifically for AI computing, likely built to accommodate its new AI chips.From its open-source AI models to AI-powered sunglasses and celebrity chatbots, the company behind Facebook and Instagram has positioned itself as an AI powerhouse. In a sign of growing confidence, Meta recently announced its first-ever stock dividend of $0.50 per share and an additional $50 billion in share repurchases, potentially signalling that the company expects its stock price to grow further in the coming months.What do you think of Meta's AI ambitions? Do you agree with Zuckerberg's vision for the future? Let us know in the comments below 👇 #AI #Meta #TechInnovation #MarkZuckerberg #Nvidia #GenerativeAI #TechIndustryImage source: Bloomberg

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Big moves in stock prices, post earnings, have become a familiar feature. The 10.5% drop in Meta, the stock, share prices as of market close on April 25, 2024 is, though at the outer edge, nevertheless consistent. But there may be more of a message in these moves for traders. Consider the following: Financial news press following the Meta report focused on the negative implications of Meta management reporting plans for a big boost in spending to develop AI solutions for its products over the near-term future. Hannah Murphy reported comments from Mark Zuckerberg, CEO "defending" the decisions driving this news: https://lnkd.in/eFVVKAcEI think Zuckerberg decided a defense was required based on an earlier precipitous drop in the share price of Meta, the stock - this one dating back to management's decision to rename the business Meta, drop the Facebook name and, at least on the surface, the Facebook brand, and, effectively, restart the business. I cannot think of a more serious pivot.But the decision to sink a substantial amount more cash into building AI solutions is, I would not say, not nearly as extreme as the earlier precedent.Seen from my angle, is the drop in price overdone?If you trade stock or derivatives, what is your take?#meta #stocktrading #ai #capitalexpenditures

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Shares of Meta sank 13% on Thursday, sparking a selloff in big technology stocks after the social media firm signaled its costly bet on AI could take years to pay off.The drop was set to erase nearly $170 billion from the company's market value and triggered a fall of 3% to 4.2% in shares of AI-focused Microsoft, Google and advertising-reliant Snap Inc.Meta CEO Mark Zuckerberg, who floored Wall Street last year with his cost-cutting drive, said on a post-earnings call that costs would grow "meaningfully" over the coming years before the company makes "much revenue" from some of its AI products.That stoked investor fears that Zuckerberg was plunging Meta into another costly endeavor at a time when its augmented and virtual reality business was losing billions of dollars each quarter.Meta forecast April-June revenue below estimates and raised the bottom end of its 2024 total expense forecast by $2 billion on Wednesday. It also raised the top end of its capital expenditure view as it invests in data centers essential to its efforts to catch up with AI frontrunners OpenAI and Microsoft.The stock has a 12-month forward price-to-earnings ratio of about 23.12, compared with Microsoft's 31.17 and Alphabet's 22.07. It has gained nearly 40% so far this year, comfortably above the benchmark S&P 500 index's (.SPX).#meta #ai #revenue #earnings #techhttps://lnkd.in/ePw4cF9i

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Meta's stock is poised to reach a 52-week high amid the ongoing surge in AI-related enthusiasm. The company's performance reflects the growing influence of artificial intelligence technologies across industries. Meta's ascent underscores the broader trend of AI's expanding impact on stock markets and investor sentiment. This development reinforces the significance of staying attuned to technological trends shaping investment opportunities. As AI continues to reshape various sectors, Meta's success serves as a notable example of the evolving investment landscape.Link:

Despite posting record revenue for the January-March quarter, Meta’s stock is being bogged down on Wednesday by the company’s increasing investments in AI.Meta reported a 27% year-over-year increase with $36.46 billion in sales for Q1, beating analysts’ forecasts.Yet, shares for Meta tumbled about 16% after trading hours on Wednesday following the company’s first-quarter results.https://lnkd.in/ejk9drf7

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Meta's $200 Billion Surge Is Biggest In Stock-Market History: An anonymous reader quotes a report from Bloomberg: Meta is poised to become Wall Street's top comeback kid. It was only a couple of years back the Facebook owner suffered the single biggest market value destruction in stock-market history. But the company has come a long way since then, on Thursday it dazzled shareholders with yet another impressive quarterly earnings report as the social media giant focuses on cutting back costs and shoring up billions in profits. The stock rose as much as 21% Friday, poised to add roughly $200 billion to its market capitalization. This would be the biggest single-session market value addition, eclipsing the $190 billion gains made by Apple and Amazon in 2022."Solid execution, faster growth, and increased capital structure efficiency improve the outlook from here," Brian Nowak, an analyst at Morgan Stanley, wrote in a note Friday. "Meta's AI pipeline for both users and advertisers is robust, with more tools set to launch and scale throughout '24," he added. Meta, which reduced headcount by 22% in 2023, unveiled plans for a $50 billion stock buyback, and announced its first quarterly dividend on Thursday, a sign to investors that it has money to spare and a reason for them to stick around. While the company is making big cost cuts, it continues to spend aggressively on artificial intelligence advancements, namely in generative AI but also on the background technologies to help feed its social media products and power its ad targeting.Read more of this story at Slashdot.

#Meta‘s earning exceeded expectations but it’s stock fell over 13%. #Tesla misses on earning, but its stock is up 10%. Interesting, isn’t it? Most probably the reason is that Meta’s CEO Mark Zuckerberg latest talk has shown more interest in the Metaverse and AI. His talks focuses much more on the future rather than now. This has left the investors skeptical of the company’s future. Also, we see so many companies building their own ads business like JP Morgen, which is one of the largest banks in the world. Biden agreed and signed on TikTok banning or selling it to a US company. I believe the dominance of social media platforms on the ads industry is about to end. What do you think? 🤔#stocks #tesla #meta #facebook #socialmedia #investing #marketing

Meta's $200 Billion Surge Is Biggest In Stock-Market History: An anonymous reader quotes a report from Bloomberg: Meta is poised to become Wall Street's top comeback kid. It was only a couple of years back the Facebook owner suffered the single biggest market value destruction in stock-market history. But the company has come a long way since then, on Thursday it dazzled shareholders with yet another impressive quarterly earnings report as the social media giant focuses on cutting back costs and shoring up billions in profits. The stock rose as much as 21% Friday, poised to add roughly $200 billion to its market capitalization. This would be the biggest single-session market value addition, eclipsing the $190 billion gains made by Apple and Amazon in 2022."Solid execution, faster growth, and increased capital structure efficiency improve the outlook from here," Brian Nowak, an analyst at Morgan Stanley, wrote in a note Friday. "Meta's AI pipeline for both users and advertisers is robust, with more tools set to launch and scale throughout '24," he added. Meta, which reduced headcount by 22% in 2023, unveiled plans for a $50 billion stock buyback, and announced its first quarterly dividend on Thursday, a sign to investors that it has money to spare and a reason for them to stick around. While the company is making big cost cuts, it continues to spend aggressively on artificial intelligence advancements, namely in generative AI but also on the background technologies to help feed its social media products and power its ad targeting.Read more of this story at Slashdot.