Meta's AI Ambitions Propel Revenue Forecast Beyond Expectations
Meta Platforms' third-quarter revenue forecast exceeded Wall Street expectations, with shares up 10% in extended trading. Despite facing antitrust lawsuits, Meta focuses on AI investments, driving ad revenue and expanding its infrastructure in a competitive market. The company is also intensifying efforts to monetize WhatsApp and Threads.
Meta Platforms, the tech giant behind Facebook and Instagram, projected a third-quarter revenue surpassing Wall Street predictions, which sent its shares climbing by 10% in after-hours trading on Wednesday. The company anticipates revenue between $47.5 billion and $50.5 billion, far above analysts' prediction of $46.17 billion, according to LSEG data.
Meta's financial guidance factors in a 1% revenue boost from a weak dollar. Expenses and capital expenditure are forecasted to rise in 2026 as the company invests heavily in AI infrastructure and initiatives. Despite significant AI investments, some investors remain cautious, questioning when visible returns might materialize.
The strategy seems to include monetizing platforms such as WhatsApp and Threads, by integrating ads. Instagram's Reels, competing with TikTok and YouTube Shorts, is expected to generate over half of Meta's U.S. ad revenue this year. As antitrust lawsuits loom, Meta continues its high-stakes battle in the AI arena by attracting top tech talents with substantial pay offers.
(With inputs from agencies.)
Google News