Meta's strong Q3 performance doesn't mitigate investor concerns about rising AI infrastructure costs, as a slowdown in digital ad sales could impact future profitability.
CEO Mark Zuckerberg has emphasized that despite promising financial results, the looming significant rise in AI-related expenses next year will put pressure on their core business.
Emarketer's Jasmine Enberg highlighted that Meta must demonstrate its ability to sustain rising AI costs without sacrificing core ad revenue, which has become a focal point for investors.
While Meta has efficient cost management, its projected increase in infrastructure expenses next year raises red flags for investors who worry about returns on massive AI investments.
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