"Meta Platforms Inc.'s better-than-expected sales outlook helped ease Wall Street concerns about plans for unprecedented spending on artificial intelligence this year. The social networking giant topped projections for holiday quarter revenue and gave a strong forecast for the current period during its earnings report Wednesday. Improvements in its online advertising business are making it possible for Meta to spend hundreds of billions of dollars over the next few years on AI infrastructure. Meta's shares jumped more than 11% in extended trading."
"Meta projected record spending for 2026, driven by Chief Executive Officer Mark Zuckerberg's aggressive campaign to amass the infrastructure, computing power and talent that he deems necessary to win a competitive AI race. Zuckerberg has said his strategy centers on "front-loading" computing capacity in preparation for reaching the company's goal of superintelligence, a theoretical milestone at which point AI can meet or outperform humans at many tasks."
Meta Platforms topped holiday-quarter revenue projections and issued a strong forecast, supported by improvements in its online advertising business. The revenue strength eased investor concerns about unprecedented planned AI spending and lifted shares over 11% in after-hours trading. The company projected record spending for 2026 as part of an aggressive push to amass infrastructure, computing capacity and AI talent to compete toward superintelligence. Capital expenditure guidance ranged from $115 billion to $135 billion, above the $110.6 billion analyst average, and could represent roughly an 87% increase from 2025 at the top end. A 2025 overhaul precedes planned model and product releases with expectations for steady improvement.
Read at Miami Herald
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