Meta Platforms Inc. (META.O) shares soared 7% on Thursday after the tech giant beat quarterly revenue estimates and forecast upbeat third-quarter sales. Strong digital ad spending on its social media platforms, coupled with AI investments, is driving the company’s success. Meta recorded revenue of $39.1 billion for the April to June period, exceeding analysts’ expectations of $38.3 billion. The company attributed the strong performance to “healthy global advertising demand” and its ongoing efforts to improve ad targeting, ranking, and delivery systems using artificial intelligence.
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Meta is committed to its AI ambitions and plans to continue investing heavily in AI infrastructure. The company forecasts capital expenditure between $37 billion and $40 billion for 2024, preparing for the demands of generative AI. Analysts remain optimistic about Meta’s future, citing its reasonable valuation and strong potential for continued growth.