The turnover increased by 27 percent compared to the previous year and was now around 36.5 billion dollars.
of Facebook owning Meta result more than doubled from a year ago, but concerns about the cost of artificial intelligence led to a drop in the value of shares on the New York Stock Exchange.
The company's operating profit in January–March was about 12.4 billion dollars, while it was about 5.7 billion in the same period last year. The company's turnover increased by 27 percent compared to the previous year and was now around 36.5 billion dollars.
“We estimate that more than 3.2 billion people use at least one of our apps every day, and we're seeing healthy growth in the US,” the company's CEO Mark Zuckerberg said in connection with the results announcement.
by an analyst at Sonata Insights by Debra Williamson according to the background of Meta's growth are especially its advanced advertising tools and the success of short videos based on algorithms copied from the video service Tiktok.
By the end of the current year, Meta can also start selling ads in Threads, which it founded as a competitor to the X messaging service. The vice president of the market research company Forrester Mike Proulx according to Threads ads would finally become a viable alternative to X in those cases where advertisers want to reach their audience in real time.
Meta made major cost cuts last year and the company, among other things, laid off thousands of employees.
According to Meta, its global workforce now stands at around 69,300, which is slightly more than in the previous quarter, but clearly less than in 2022. At that time, there were more than 87,000 employees.
The company ended last year with record revenue, and since then, its stock price has risen on Wall Street, driven in particular by enthusiasm for artificial intelligence. The value of Meta's shares nearly tripled last year and has risen by another 40 percent this year.
However, the course fell by almost 17 percent in the aftermarket on Wednesday. Investors have been concerned about signs that the company's expenses are on the way to growing again.
Artificial intelligence investments therefore, Meta said it expects full-year 2024 capital expenditures to be between $35 billion and $40 billion. The estimate has increased from the previous 30-37 billion dollars.
Zuckerberg has urged investors to be patient and warned that building an artificial intelligence in a leadership position will be a bigger project than the features the company has previously added to its applications.
Last week, Zuckerberg announced the latest version of Meta AI, which is to be used as an enhanced virtual assistant in the company's applications, which include Instagram, WhatsApp, Messenger and Facebook.
This latest technology from Meta is now being rolled out in more than ten English-speaking countries, including Australia, Canada, Singapore and the United States.
The tech giants compete for AI leadership. Software giant Microsoft has been seen as having a strong foothold here thanks to its partnership with OpenAI, creator of the Chat GPT chatbot that uses artificial intelligence.
Artificial intelligence gives a boost to Microsoft's cloud services core business. Meta, on the other hand, does not offer cloud services, which increases concerns about the high costs of introducing artificial intelligence technology in the company.
The department dedicated to the “metaverse” envisioned by Zuckerberg, on the other hand, made huge losses of 3.8 billion dollars, which on the other hand were smaller than expected.
Meta has considered the metaverse, a kind of combination of virtual and augmented reality, to be the future of the internet.
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