Meta's stock faced a decline after a significant winning streak, dropping more than 2.76%. Despite this fall, the overall performance has been strong this year, with a 17% increase in the past month. CEO Mark Zuckerberg announced a significant boost in capital expenditures for AI, projected at $65 billion. These investments are believed to surpass those of other tech companies, helping enhance user engagement on Facebook and Instagram. This trend highlights Meta's strategic focus on AI to strengthen its advertising and user retention efforts, even amid broader industry struggles.
They've used [their AI investments] largely to drive their business where ... other companies have been trying to be a little bit more all things to all people.
Improvements to our AI-driven feed and video recommendations have led to an 8% increase in time spent on Facebook and a 6% increase on Instagram this year alone.
Meta will spend upwards of $65 billion building on capital expenditures related to AI data centers this year, a significant increase from $40 billion the company said it would spend in 2024.
Meta's stock is up 17% over the last month and 22% year to date.
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