During the recent Meta Connect event in Menlo Park, California, CEO Mark Zuckerberg showcased the company’s Orion AR glasses, a sign of Meta’s ongoing commitment to augmented reality technologies. This event took place on September 25, 2024, and coincided with a significant financial announcement from the tech giant.
Meta’s stock experienced a notable increase of approximately 4% in after-hours trading following Zuckerberg’s remarks on the company’s earnings call. He revealed plans for substantial investments in artificial intelligence infrastructure, projecting “hundreds of billions of dollars” in the long term. These investments come as the company reported impressive fourth-quarter earnings, surpassing Wall Street’s expectations.
In the fourth quarter of 2024, Meta reported revenues of $48.4 billion, marking a year-over-year increase of 21%. The earnings per share hit $8.02, and the net income surged to $20.8 billion. Overall, the company’s full-year revenue reached $164.5 billion—up 22% from the previous year. Analysts had anticipated revenues of around $47 billion for the quarter, reflecting Meta’s robust performance in AI and social media.
Looking ahead, the company projected first-quarter revenues between $39.5 billion and $41.8 billion, slightly missing analysts’ expectations of $41.7 billion. Nonetheless, Meta’s shares remain up approximately 15.5% year to date.
Zuckerberg expressed optimism regarding the company’s trajectory, particularly in AI and augmented reality, stating, “We continue to make good progress on AI, glasses, and the future of social media.” He emphasized plans to invest between $60 billion and $65 billion in capital expenditures focused on AI this year alone.
In a bid to enhance its technological capabilities, Meta is in the process of constructing a large-scale data center, capable of producing over two gigawatts of power—enough to cover a significant portion of Manhattan. This facility is expected to bring approximately one gigawatt of compute power online by 2025. Additionally, the company plans to expand its AI teams significantly and has committed to maintaining financial resources for ongoing investments in the years ahead.
However, in tandem with these expansions, Zuckerberg informed company managers about a workforce reduction of about 5%, equating to around 3,600 jobs. This move is aimed at letting go of “low-performers,” with intentions to potentially replace these roles later in the year.
In summary, Meta’s strategic focus on AI and augmented reality positions the company for continued growth and innovation. As it navigates workforce adjustments, the commitment to enhancing its technological infrastructure points to a forward-looking vision that could yield significant advancements and opportunities in the tech industry. The combination of these developments offers a hopeful glimpse into the future, underscoring Meta’s determination to lead in the evolving landscape of social media and AI technologies.