Meta Platforms, Inc. (META) Surpasses Q3 Expectations with $40.59 Billion Revenue
Meta Platforms, Inc. (NASDAQ:META) recently released its fiscal third-quarter earnings report, exceeding expectations with a revenue of $40.59 billion. This marked an increase compared to analysts' estimates of $40.29 billion. Additionally, the company reported a net income of $15.69 billion, reflecting a 35% growth.
AI Advancements and Momentum
The success of Meta Platforms, Inc. in the third quarter can be attributed to advancements in AI across its products. The company saw strong momentum with Meta AI, Llama adoption, and AI-powered glasses.
Investments in AI Infrastructure
Despite the positive earnings report, Meta's shares experienced a decline in after-hours trading due to the company's increased capital expenditure, which rose by 36% to $9.2 billion. Meta's CEO, Mark Zuckerberg, cautioned about a "significant acceleration" in expenses related to artificial intelligence infrastructure in the coming year. This raised concerns among investors about whether the revenue from digital ad sales within the social media business would be sufficient to cover the costs of the extensive AI buildout.
Position in AI Stocks
Meta Platforms, Inc. (META) ranks 2nd on the list of AI stocks that investors should keep an eye on. While META shows promise as an investment, other AI stocks may offer greater potential for higher returns within a shorter timeframe.
If you are interested in exploring AI stocks with significant growth potential and trading at less than 5 times their earnings, consider checking out our report on the cheapest AI stock.
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Disclosure: None. This article was originally published on Insider Monkey.
