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Meta reports fourth-quarter earnings this week: What to expect
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Meta (META+1.48%) is expected to release its fourth-quarter earnings results at the end of the trading day on Wednesday.
The tech giant’s stock was up by 1.7% at the market close on Friday at $11.04 per share.
The company is expected to report revenues of $47 billion for the fourth quarter of 2024, according to analysts’ estimates compiled by FactSet (FDS+0.19%). Net income is estimated to be $23.3 billion for the quarter ended in December, while earnings per share is expected to be $6.75.
On Friday, Meta chief executive Mark Zuckerberg said in a Facebook post that the tech giant is planning to invest between $60 billion and $65 billion in capital expenditures on AI in 2025.
Zuckerberg said he expects Meta AI to “be the leading assistant serving more than 1 billion people” in 2025, and he added that Meta’s Llama 4 model is expected to “become the leading state of the art model” this year. The company also plans to “build an AI engineer” that can contribute more code to its research and development efforts, he said.
To support the AI expansion, Zuckerberg said the company is building a data center with a capacity of more than two gigawatts — a site that could cover a large part of Manhattan. The data center will bring around one gigawatt of compute power online in 2025, Zuckerberg said, and Meta will have more than 1.3 million graphics processing units (GPUs) by the end of the year.
Meta plans to “significantly” grow its AI teams, Zuckerberg said, and has “the capital to continue investing in the years ahead.”
Earlier this month, Meta — which operates Facebook, Instagram, and Reality Labs (formerly Oculus VR) — sent a message to company managers about reducing headcount by 5%, affecting about 3,600 jobs, Bloomberg reported. The cuts are aimed at “low-performers” who will reportedly be replaced later in the year.
“We typically manage out people who aren’t meeting expectations over the course of a year, but now we’re going to do more extensive performance-based cuts during this cycle,” Zuckerberg reportedly said in the internal message.
Meanwhile, the Meta chief has introduced new company policies, such as cutting back on moderation and scrapping the platform’s fact-checking system, as he’s grown closer with the Trump administration.
Meta, formerly known as Facebook, is set to report its fourth-quarter earnings this week. Investors and analysts alike are eagerly anticipating the tech giant’s financial results, which will provide valuable insights into the company’s performance and growth prospects.
In light of recent developments, such as the rebranding to Meta and the ongoing scrutiny surrounding its business practices, there is a heightened level of interest in this earnings report. Here are a few key points to consider as we await Meta’s financial results:
1. Advertising revenue: Meta’s core business is built on advertising, and its revenue from this segment is expected to be a major focus of the earnings report. Analysts will be looking for any signs of growth or potential challenges in the company’s ad business.
2. User growth and engagement: With over 3 billion monthly active users across its platforms, Meta’s user base is a key factor in its success. Investors will be closely monitoring any changes in user numbers, engagement metrics, and average revenue per user.
3. Expenses and investments: Meta has been making significant investments in areas such as virtual reality, augmented reality, and the metaverse. Analysts will be interested to see how these investments are impacting the company’s bottom line and future growth prospects.
4. Guidance and outlook: In addition to the financial results, investors will be looking for guidance from Meta’s management team on the company’s future prospects and growth strategy. Any updates on the metaverse, regulatory challenges, or other key initiatives will be closely watched.
Overall, Meta’s fourth-quarter earnings report is expected to be a major event for investors and market watchers. Stay tuned for the latest updates and analysis on Meta’s financial performance and what it means for the company’s future.
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