"It's important to note that Meta's well-established social media business has helped it produce a long history of earnings growth. Advertisement across Meta's apps drives revenue, as many sorts of businesses sign up for ads to reach us where they know they'll find us -- on these social media platforms. In the recent quarter, advertising revenue climbed about 25% to $50 billion."
"While AI represents a considerable investment for Meta today, this effort could deliver big down the road. Meta is using AI to improve the overall advertising experience and boost the capabilities of its apps to keep users on them longer -- all of this should encourage advertisers to keep coming back to Meta and even increase their ad spending. Finally, the investment in AI could lead to additional products and services that may expand revenue streams in the coming years."
Meta Platforms owns Facebook, Messenger, Instagram, and WhatsApp, with about 3.5 billion people using at least one daily. Advertising across these apps drives revenue and produced a long history of earnings growth, with advertising revenue climbing about 25% to $50 billion in the recent quarter. Meta has developed its own large language model and deploys AI in products such as an AI assistant. The company is investing heavily in AI to improve advertising performance, lengthen user engagement, and enable new products and services. Strong cash generation allows continued AI investment and shareholder returns, presenting both stability and growth potential.
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