Meta earnings top expectations as company forecasts higher costs, AI investments in year ahead
Published On Jan 29, 2025, 4:43 PM
Meta Platforms, Inc. reported fourth quarter earnings that exceeded expectations, with an EPS of $8.02 and revenue of $48.4 billion. This was significantly higher than analysts' predictions. Despite strong earnings, the company anticipates a slowdown in revenue growth in early 2025, projecting revenue between $39.5 billion and $41.8 billion. Furthermore, Meta plans to increase its expenditures on AI infrastructure, forecasting a rise in expenses to $114 billion-$119 billion for 2025, primarily due to infrastructure costs and talent acquisition.
Stock Forecasts
META
Negative
Despite the strong earnings report, the anticipated increase in costs and projected slower revenue growth may negatively impact investor sentiment. The focus on AI investments signals long-term strategic growth but could create short-term volatility in stock performance.
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