Social Media Giant Meta Reports Big Profit and Plans Massive AI Investment
Social media giant Meta, the parent company of Facebook, Instagram, and WhatsApp, has announced impressive financial results for 2024, with a significant increase in profits and revenue. The company also revealed ambitious plans to enhance its artificial intelligence capabilities in the coming year.
For the full year of 2024, Meta's net income surged by 59 percent to $62.36 billion, while fourth-quarter profits jumped by 49 percent to $20.84 billion. The company's revenue reached $164.5 billion, marking a 22 percent increase from the previous year. This growth was primarily driven by improved advertising performance, as ad prices rose by 10 percent and impressions increased by 11 percent across its platforms.
Focus on AI and Future Developments
"We continue to make good progress on AI, glasses, and the future of social media," stated Meta's CEO Mark Zuckerberg. He expressed optimism about scaling these initiatives in 2025, highlighting the company's commitment to innovation and technological advancements.
Meta's strong financial performance coincides with significant changes in its content policies, including the discontinuation of the U.S. fact-checking program. These adjustments are aimed at aligning the company with the current political landscape and fostering a more favorable relationship with key stakeholders.
Expanding User Base and Infrastructure Investments
Despite these policy changes, Meta's user base continued to grow, reaching 3.35 billion daily active users across its platforms in December 2024. Looking ahead, the company plans to make substantial investments in infrastructure, with expected capital expenditures of $60-65 billion for 2025, predominantly to support AI initiatives.
"In AI, I expect this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading Assistant," Zuckerberg emphasized, underscoring Meta's dedication to advancing AI technologies.
Addressing Workforce and Competition
Meta expanded its workforce by 10 percent in 2024, totaling 74,067 employees, with a focus on hiring technical roles for AI development and infrastructure. The company also announced plans to dismiss 3,600 low-performing employees, as part of its efforts to strengthen its talent pool.
While Meta faces regulatory challenges and growing competition, particularly from Chinese startup DeepSeek and its innovative AI model, the company remains confident in its strategic positioning and growth prospects. Meta anticipates first-quarter 2025 revenue between $39.5-41.8 billion, reflecting continued growth and market resilience.
By leveraging its financial strength and technological expertise, Meta aims to drive innovation, enhance user experiences, and solidify its position as a leading global technology company in the years to come.
