The Facebook and Instagram parent company said revenue rose 22% to US$39.1-billion for the April to June period
beat market expectations for second-quarter revenue on Wednesday and issued a rosy sales forecast for the third quarter as well, signalling that robust digital-ad spending on its social media platforms can cover the cost of its artificial-intelligence investments.The Facebook and Instagram parent company said revenue rose 22% to US$39.1 billion for the April to June period. Analysts had expected revenue of $38.3 billion, according to LSEG data.
Meta’s earnings come after disappointing results posted by fellow tech industry powerhouses which suggested the payoff from hefty investments in AI technology may take longer than Wall Street had hoped. Like both of those companies, Meta has been plowing billions of dollars into its data centres in an effort to capitalize on the generative AI boom. Its shares sank in April after it disclosed a higher-than-expected expense forecast, quickly knocking $200 billion off its stock-market value.
The company said it would continue to spend big on AI infrastructure, anticipating 2024 capital expenditure would fall between $37 billion and $40 billion, up $2 billion at the lower end from its previous forecast of $35 billion to $40 billion.Meta has been updating its ad-buying products with AI tools and short video formats to boost revenue growth, while also introducing new AI features like chat assistants to drive engagement on its social media properties.
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