Meta wows Wall Street despite spending billions on AI and facing social media addiction trial
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Meta wows Wall Street despite spending billions on AI and facing social media addiction trial
"As Meta spends billions on artificial intelligence data centers and its CEO prepares to testify in a landmark social media trial, the company is earning a pretty penny. Meta reported strong financial results on Wednesday, beating Wall Street expectations of $58.59bn with $59.89bn in revenue for the fourth quarter of 2025. It reported earnings per share (EPS) of $8.88 which also surpassed Wall Street expectations of $8.23 in EPS. Meta's stocks jumped nearly 10% in after-hours trading after the release."
"This will unlock the ability to build completely new products and transform how we work. The company is particularly focused on building superintelligence and AI that is even more tuned into a personal context. Zuckerberg described a broader effort to merge LLMs with the recommendation systems that already power Facebook, Instagram, Threads and Meta's ads. Today, our apps feel like algorithms that recommend content, he said."
Meta reported $59.89bn revenue and $8.88 EPS for Q4 2025, beating Wall Street expectations and triggering a nearly 10% after-hours stock jump. The company expanded multibillion-dollar AI infrastructure investments in 2025 and announced a potential up-to-$6bn Corning fiber-optic cable deal for data centers. Meta expects to spend between $162-169bn in 2026, with most money allocated to infrastructure and employee compensation to support AI expansion. Leadership emphasized accelerating AI agents, merging large language models with existing recommendation systems, and building personalized superintelligence that understands users and can generate or surface highly personalized content across its apps and ads.
Read at www.theguardian.com
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