Meta, the parent company of Facebook, Instagram, and WhatsApp, doubled its net income in the first quarter of the current year.
But the company’s rising investment in artificial intelligence is causing concern.
Mentioning that Meta ranks second in the world in online advertising.
With its quarterly sales rise of 27% to become $36.5 billion, generating profits of $12.4 billion, both numbers exceeding expectations.
Meta: $35 and $40 billion investments this Year
However, Meta also announced that its investments will range between $35 and $40 billion this year.
Due to needs in the field of artificial intelligence, whether in infrastructure, research and development, or otherwise.
This information raised fears in the financial market.
Leading to a 16% drop in the group’s share price in electronic trading after the New York Stock Exchange closed.
Meta was behind Google and Microsoft in the heated race to develop generative artificial intelligence.
Surprisingly, it has announced last week an improved version of its AI-based assistant “Meta AI” that answers users’ questions, similar to “ChatGPT”.
Mark Zuckerberg: Metaverse is the Future of the Internet
“Meta AI” will have a more active presence on the group’s platforms.
It is more intelligent and faster due to the progress made by the new AI model “Llama 3”.
Mark Zuckerberg, who believes that the “metaverse” is the future of the Internet, reiterated his confidence in the potential of this technology.
He saw that artificial intelligence is in line with new products related to the “metaverse”.
Zuckerberg commented: “connected glasses are ideal for the AI assistant.
Because they allow it to see what the (user) sees and hear what he hears.
Therefore the assistant will have everything it needs to help the user.”
New Operating System
Recently, the US group launched its “Meta Horizon OS” operating system for mixed reality devices.
Which combines real elements with augmented and virtual reality.
Some analysts were more optimistic, given the growth of Meta’s core business.
The advertising space available for sale on Meta is increasing and its average price is rising.
It is allowing “to generate enviable margins, even if it continues to invest in sectors that may not contribute to profits for years,” as Max Willens of “eMarketer” saw it.
The UAE welcomes the results of the report issued by the Independent Committee on the performance of the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), which confirmed its pivotal role in supporting relief and development efforts for the Palestinian people pic.twitter.com/V05qxdUSIH
— UAE Voice (@uae_voiceeng) April 25, 2024
By the end of the year, Meta will be able to start selling ads on its text platform “Threads”, similar to the “X” platform.
Which will satisfy advertisers who want to communicate in real time with their audience and who will finally have an alternative to +X+.
Debra Williamson of “Sonata Insights” noted that Meta is lagging behind in AI.
However, she saw that “its platforms provide it with a huge user base to test AI experiences and quickly assess which ones its users are attracted to.”
FYI: 3.24 billion people use at least one of Meta services daily, which is an increase of 50 million from the number of users at the end of 2023.
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