Meta's AI Investments Drive Strong Q2 Performance, Fueling Future Growth
63 Sources
[1]
Meta is playing the AI game with house money
Mark Zuckerberg's AI hiring spree is costing a lot of money. His investors don't care. Meta's stock price shot up over 10 percent on Wednesday after the company reported better-than-expected earnings. Revenue generated in the second quarter was $47.5 billion, up 22 percent from a year ago. Daily
[2]
Meta Gives Strong Third-Quarter Sales Forecast, Sees Higher 2025 CapEx On AI Spending
Meta Platforms Inc. topped projections for second-quarter sales and gave a stronger-than-expected forecast for the current period, a sign that the social media company's advertising business is still growing quickly enough to support aggressive spending on artificial intelligence. Meta lifted the
[3]
Meta Soars to Record as Growth Justifies Spending
Meta is increasing spending next year, with executives saying now is the time to seize on investment opportunities in artificial intelligence. Meta's strategy relies on its advertising business continuing to generate revenue, with Mark Zuckerberg saying the ads business is already seeing a
[4]
Meta growth driven by machine learning, not GenAI
Good old machine learning, not LLMs, are what's really paying for Zuck's genAI splurge Believe it or not, Meta's AI investments made a meaningful difference to its advertising business in Q2 -- it's just that those models aren't the kind that's got everyone, including the Social Network, plowing
[5]
Meta jumps on big revenue forecast beat, small capex raise
July 30 (Reuters) - Meta Platforms (META.O), opens new tab forecast third-quarter revenue well ahead of Wall Street expectations, and raised the lower end of its capital expenses forecast for the year, sending its shares up 10% in extended trading. For the third quarter, Meta said it expected
[6]
Meta narrows annual capital expenditures outlook for 'superintelligence' push, shares surge
July 30 (Reuters) - Meta Platforms (META.O), opens new tab narrowed its annual capital expenditures forecast on Wednesday, driven by the social media giant's high-stakes push for "superintelligence" in the heated AI race, sending its shares up nearly 9% in extended trading. The Facebook and
[7]
Meta shares jump as AI fuels ad sales, outweighing big capital costs
July 30 (Reuters) - Meta Platforms (META.O), opens new tab forecast third-quarter revenue well above analysts' estimates on Wednesday, as artificial intelligence once more powered its core advertising business, sending its shares soaring 11% in extended trading. The bumper results could ease
[8]
Microsoft, Meta surge after blowout results
LONDON, July 31 (Reuters) - Shares in artificial intelligence heavyweights Microsoft (MSFT.O), opens new tab and Meta Platforms (META.O), opens new tab both surged in European trading on Thursday, after blowout quarterly results after-market on Wednesday. Meta shares surged 12.2% in Frankfurt
[9]
Wall St futures hit record peaks as Meta, Microsoft results get AI boost
July 31 (Reuters) - Futures tied to the S&P 500 and Nasdaq surged to record highs on Thursday after strong earnings from tech giants Meta and Microsoft reinforced investor confidence that artificial intelligence investments are paying off. Meta Platforms (META.O), opens new tab soared 11.5% in
[10]
Microsoft and Meta fuel $500-billion gain in AI stocks
July 30 (Reuters) - Wall Street's AI heavyweights added a combined half a trillion dollars in stock market value late on Wednesday after quarterly reports from Microsoft (MSFT.O), opens new tab and Meta Platforms (META.O), opens new tab showed massive investments in the emerging technology were
[11]
Meta shares jump on big revenue forecast, small capex raise
July 30 (Reuters) - Meta Platforms (META.O), opens new tab forecast third-quarter revenue well above Wall Street estimates on Wednesday, as artificial intelligence continued to strengthen its core advertising business, sending its shares up 10% in extended trading. The company also raised the
[12]
Big Tech may be breaking the bank for AI, but investors love it
July 31 (Reuters) - Big Tech is spending more than ever on artificial intelligence - but the returns are rising too, and investors are buying in. AI played a bigger role in driving demand across internet search, digital advertising and cloud computing in the April-June quarter, powering revenue
[13]
Microsoft, Meta's AI-powered results lift Wall St futures to new highs
July 31 (Reuters) - S&P 500 and Nasdaq futures climbed to record levels on Thursday, after blockbuster earnings from Meta and Microsoft signaled Big Tech's hefty artificial intelligence bets were paying off. Meta Platforms (META.O), opens new tab soared 12.3% in premarket trading after the social
[14]
What top Wall Street analysts are watching in Meta's earnings out Wednesday
Wall Street remains bullish on Meta Platforms' longer-term strategy, but analysts remain watchful of how the company's artificial intelligence efforts could weigh on its second-quarter results out Wednesday. Meta shares have rallied 20% this year through Tuesday, more than twice the return in the S
[15]
Meta slated to reported second-quarter earnings after the bell
Mark Zuckerberg, CEO of Meta Platforms.David Paul Morris | Bloomberg | Getty Images Meta is set to report its second-quarter earnings on Wednesday, with analysts eyeing any changes to the company's costs and related guidance amid CEO Mark Zuckerberg's recent artificial intelligence hiring
[16]
Meta stock surges after Q2 results blow past expectations despite heavy AI spending
In the midst of an artificial intelligence spending spree, Meta posted stronger-than-expected results for the second quarter, buoyed by growing ad revenue even as its expenses increased. Shares of Meta Platforms Inc. surged more than 9% after-hours as a result. The Menlo Park, California-based
[17]
This comment from Meta on its conference call is what has reinvigorated the AI trade
Meta has stepped up spending to build out infrastructure to power artificial intelligence, and that's reviving the AI trade, which had been showing signs of fatigue. "While the infrastructure planning process remains highly dynamic, we currently expect another year of similarly significant capital
[18]
Meta Platforms profits surge helps fuel Zuckerberg's AI ambitions
Meta says the cost of building infrastructure, including servers and data centres, and workers' pay packages will be its biggest expenses. Before Meta's earnings announcement on Wednesday, Zuckerberg posted a video on Instagram describing his plans for developing what he calls "AI
[19]
Big tech sees AI investments begin to pay off
Why it matters: Investors will want to see those massive investments not only generate revenue, but profits too. * While investors applauded strong returns from Google, Microsoft and Meta, there are signs that their patience is not infinite. * Light guidance from Amazon sent shares plunging
[20]
What Wall Street will be looking for in Meta's Q2 earnings
Meta's second-quarter earnings won't just be a referendum on the company's ad business -- it'll be a pivotal moment to assess whether the company's frenetic AI investments are paying off or simply draining its balance sheet. And when the company releases its numbers Wednesday after the bell,
[21]
Meta smashes Q2 earnings as its AI investments surge
Before Meta's superintelligence ambitions can change the world, they had to pass the far less glamorous test of a quarterly earnings call. And they did. The tech giant crushed second-quarter earnings expectations (a fifth-straight beat): $47.52 billion in revenue (up 22%) and $7.14 EPS (up 38%),
[22]
Meta stock surges after Q2 results blow past expectations despite heavy AI spending
Meta's artificial intelligence spending spree appears to be paying off with investors, who sent the company's stock soaring after hours on Wednesday following a blowout quarterly earnings report. The Menlo Park, California-based company easily beat Wall Street's expectations for the second
[23]
Meta's Mark Zuckerberg laid out his AI vision that outperformed Q2 expectations and sent shares soaring
Meta Platforms CEO Mark Zuckerberg expects to deliver "personal superintelligence for everyone" but his ambitious bets on AI are impacting the company's cash flows and are likely to hit expenses even harder as Meta soups up its AI capabilities and continues its hiring spree. The social media giant
[24]
Meta's ad business is funding Mark Zuckerberg's AI vision
Mark Zuckerberg doesn't need your AI patience. He has your money. Right now, the Meta CEO -- and his company -- is spending like a man who has never heard the word "budget." The Silicon Valley giant, in its second-quarter earnings posted Wednesday, hiked its 2025 capital expenditure forecast to an
[25]
US tech titan earnings rise on AI as economy roils
Tech giants Amazon, Apple, Meta and Microsoft this week eclipsed earnings expectations, cashing in on artificial intelligence (AI) while navigating economic waters roiled by US tariffs. "Massive results seen by Microsoft and Meta further validate the use cases and unprecedented spending trajectory
[26]
Meta beats expectations sending share price soaring
San Francisco (United States) (AFP) - Meta reported robust second-quarter financial results Wednesday, with revenue jumping 22 percent year-over-year to $47.5 billion as the social media giant continues investing heavily in artificial intelligence. The Facebook and Instagram owner's share price
[27]
US tech titan earnings rise on AI as economy roils
San Francisco (United States) (AFP) - Tech giants Amazon, Apple, Meta and Microsoft this week eclipsed earnings expectations, cashing in on artificial intelligence (AI) while navigating economic waters roiled by US tariffs. "Massive results seen by Microsoft and Meta further validate the use cases
[28]
Meta's stock makes sharp gains on blowout earnings results - SiliconANGLE
Meta Platforms Inc. easily beat Wall Street's expectations as it posted its second-quarter financial results today, and its shares gained more than 11% in extended trading. The company reported earnings before certain costs such as stock compensation of $7.14 per share, while revenue for the
[29]
Meta bets on 'superintelligence' as revenues jump 22pc
As Mark Zuckerberg set out his vision for AI and Meta's drive for 'superintelligence', the Facebook parent company saw revenues up 22pc in quarter two. As the company beat analysts' forecasts with a 22pc increase in revenue for the second quarter, Meta yesterday signalled that its spending blitz
[30]
Meta shares surge as AI investment pays off
Shares in Meta, the tech firm behind Facebook and Instagram, have surged in extended trading after posting a bumper set of financial results that eased concerns it was lagging rivals in the artificial intelligence (AI) race. The stock was up 11% after it reported figures covering the second
[31]
Meta stock surges after Q2 results blow past expectations despite heavy AI spending
In the midst of an artificial intelligence spending spree, Meta posted stronger-than-expected results for the second quarter, buoyed by growing ad revenue even as its expenses increased. Shares of Meta Platforms Inc. surged more than 9% after-hours as a result. The Menlo Park, California-based
[32]
Meta stock surges after Q2 results blow past expectations despite heavy AI spending
In the midst of an artificial intelligence spending spree, Meta posted stronger-than-expected results for the second quarter, buoyed by growing ad revenue even as its expenses increased In the midst of an artificial intelligence spending spree, Meta posted stronger-than-expected results for the
[33]
Meta shares jump after strong third-quarter sales forecast
Gift 5 articles to anyone you choose each month when you subscribe. Meta Platforms topped projections for second-quarter sales and gave a stronger-than-expected forecast for the current period, a sign that the social media company's advertising business is still growing quickly enough to support
[34]
Meta Stock Surges After Q2 Results Blow Past Expectations Despite Heavy AI Spending
In the midst of an artificial intelligence spending spree, Meta posted stronger-than-expected results for the second quarter, buoyed by growing ad revenue even as its expenses increased. Shares of Meta Platforms Inc. surged more than 9% after-hours as a result. The Menlo Park, California-based
[35]
Mark Zuckerberg Has Convinced Wall Street to Buy Into His AI Ambitions
Want more stock market and economic analysis from Phil Rosen directly in your inbox? Subscribe to Opening Bell Daily's newsletter. Mark Zuckerberg is diverting more and more of Meta's unlimited budget into AI and Wall Street just keeps applauding. After trading closed Wednesday, the Facebook
[36]
What Analysts Think of Meta Stock Ahead of Earnings
Meta's AI spending plans will be in focus after its rival, Google parent Alphabet, raised its 2025 capital expenditures projection by $10 billion. Meta Platforms (META) is scheduled to report second-quarter results after the closing bell Wednesday, with analysts overwhelmingly bullish on the tech
[37]
Meta Reports Earnings Today. Here's What Traders Expect the Stock To Do
Meta Platforms (META) is set to report second-quarter results after the market closes today, with traders anticipating the stock could test record highs following the report. Current options pricing suggests traders expect the Facebook and Instagram parent's stock could move more than 5% in either
[38]
Here's Why Meta's Earnings Were Better-Than-Expected, According to CEO Mark Zuckerberg
Meta reported $47.52 billion in revenue for its second quarter ending in June on Wednesday, a 22% year-over-year increase and higher than the $44.8 billion analysts expected. On Thursday, Meta stock reached a record high of $784.75, surpassing the previous record close of $738.09 reached on June
[39]
Meta stock surges after Q2 results blow past expectations despite heavy AI spending - The Economic Times
Meta's artificial intelligence spending spree appears to be paying off with investors, who sent the company's stock soaring after hours on Wednesday following a blowout quarterly earnings report. The Menlo Park, California-based company easily beat Wall Street's expectations for the second
[40]
Big Tech may be breaking the bank for AI, but investors love it - The Economic Times
AI played a bigger role in driving demand across internet search, digital advertising and cloud computing in the April-June quarter, powering revenue growth at technology giants Microsoft, Meta, and Alphabet.Big Tech is spending more than ever on artificial intelligence - but the returns are rising
[41]
US stock futures hit record peaks as Meta, Microsoft results get AI boost - The Economic Times
Futures tied to the S&P 500 and Nasdaq surged to record highs on Thursday after strong earnings from tech giants Meta and Microsoft reinforced investor confidence that artificial intelligence investments are paying off. Meta Platforms soared 11.5% in premarket trading after the social media giant
[42]
US stock futures hit record peaks as Meta, Microsoft results get AI boost
Futures tied to the S&P 500 and Nasdaq surged to record highs on Thursday after strong earnings from tech giants Meta and Microsoft reinforced investor confidence that artificial intelligence investments are paying off. Meta Platforms soared 11.5% in premarket trading after the social media giant
[43]
Meta shares surge 10% on strong Q2 2025 earnings beat and bullish revenue forecast
Meta Platforms Inc. reported impressive Q2 2025 earnings, exceeding Wall Street's forecasts and triggering a stock rally. The company's revenue reached $47.52 billion, with EPS at $7.14, driven by strong advertising performance and despite significant AI investments. Meta anticipates continued
[44]
US tech titan earnings rise on AI as economy roils - The Economic Times
Amazon, Apple, Meta, and Microsoft all beat earnings expectations, boosted by strong AI investments. Microsoft and Meta saw major gains, with Microsoft hitting a $4 trillion valuation. Amazon's profits rose 35%, while Apple managed solid iPhone sales despite heavy US tariffs. AI spending remains a
[45]
Meta's Strong Revenues May Offset Concerns Over Soaring AI Investments: Analyst - Meta Platforms (NASDAQ:META)
Meta Platforms META is poised for a significant market focus on its expanding artificial intelligence initiatives, with increasing investments in AI talent and infrastructure signaling a strategic pivot. The company's aggressive push into advanced AI development is driving elevated revenue and
[46]
Mark Zuckerberg Burns A $32 Billion Hole In Meta's Wallet Through Aggressive AI Investments For A 72% Drop
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Facebook parent Meta's shares jumped by 12% today after the firm reported a solid quarter yesterday and smashed analyst revenue and EPS estimates out of the
[47]
Meta's AI Isn't Just Smart -- It's Paying The Bills - Meta Platforms (NASDAQ:META)
Meta Platforms Inc META just dropped a blowout second quarter -- but the real headline isn't the numbers, it's the algorithm. According to JPMorgan's Doug Anmuth, Meta's AI isn't just writing code or generating Llama buzz. It's quietly monetizing user attention and paying for the next leap:
[48]
Meta, Microsoft, Google Are Unleashing A $240 Billion AI Tsunami - Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META)
The AI revolution is officially a $240 billion spending spree. Meta Platforms Inc META, Microsoft Corp MSFT and Alphabet Inc's GOOGL GOOG Google are pouring unprecedented capital into AI infrastructure, igniting what Wedbush analyst Dan Ives calls a "watershed moment" for technology. The
[49]
After a 700% Rally Over the Last 3 Years, This Magnificent Artificial Intelligence (AI) Stock Looks Poised For Even More Monster Gains | The Motley Fool
Three years ago, shares of Meta Platforms (META -2.29%) hit a low around $89 as the company's ambitious plans to conquer the metaverse appeared to be rooted more in fantasy than reality. To add some perspective, Meta stock had not traded anywhere near those levels for almost a decade. The
[50]
Should You Buy Meta Platforms Stock Before July 30? Wall Street Has a Clear Answer for Investors. | The Motley Fool
Most Wall Street analysts see upside in Meta Platforms stock ahead of the company's second-quarter earnings report. The "Magnificent Seven" stocks have delivered mixed performances year to date, but shares of Meta Platform (META 0.64%) have gained 22% due to strong financial results and positive
[51]
Meta Earnings: Spending Big on AI | The Motley Fool
Meta Platforms easily beat analyst expectations in the second quarter. Revenue was up 22% year over year to $47.5 billion, and earnings per share soared 38% to $7.14. The number of daily active people across the company's products rose by 6% to 3.48 billion, ad impressions shot up 11%, and average
[52]
As Mark Zuckerberg Focuses on "Personal Superintelligence," Meta Smashes Quarterly Expectations
TNT Sports Quadruples Down on Savannah Bananas, Will Televise Banana Ball Championship Meta is now firmly focused on artificial intelligence, but its core business is still booming. The tech giant handily topped Wall Street expectations in its Q2 earnings report Wednesday, with revenue surging 22
[53]
Meta Earnings - Zuckerberg Says AI Superintelligence Now In Sight
AI superintelligence, or AI that is smarter than human beings, was a feasible possibility, claimed Meta CEO Mark Zuckerberg during the company's latest quarterly earnings call. He stated that the technology was likely to shape the company's systems within the next few years. The company
[54]
Mark Zuckerberg's Meta surges as Facebook parent's revenue soars on...
Meta Platforms narrowed its annual capital expenditures forecast on Wednesday, driven by the social media giant's high-stakes push for "superintelligence" in the heated AI race, sending its shares up nearly 9% in extended trading. The Facebook and Instagram parent now expects capital expenditures
[55]
Meta Stock Climbs 12% After Strong Q2 Performance and AI Strategy
In his statement, the CEO also introduced the company's long-term vision of 'personal superintelligence.' This concept involves developing smart, personalized AI assistants to enhance creativity, productivity, and social interactions. The goal is to embed AI deeper into daily life across Meta's
[56]
Big Tech may be breaking the bank for AI, but investors love it
Big Tech is spending more than ever on artificial intelligence - but the returns are rising too, and investors are buying in. AI played a bigger role in driving demand across internet search, digital advertising and cloud computing in the April-June quarter, powering revenue growth at technology
[57]
Meta Earnings Preview: Can Social Media Giant Justify Massive Bet on AI? | Investing.com UK
Tech firms are currently spending heavily on AI, and Google's parent company, Alphabet (NASDAQ:GOOGL), just said it will raise its AI investment to $85 billion this year. Meta is also focused on AI and may announce plans to boost spending. Investors will be watching closely to see what Meta says
[58]
Meta shares jump as AI fuels ad sales, outweighing big capital costs
(Reuters) -Meta Platforms forecast third-quarter revenue well above analysts' estimates on Wednesday, as artificial intelligence once more powered its core advertising business, sending its shares soaring 11% in extended trading. The bumper results could ease investor worries about the social
[59]
Meta confirms its momentum and surprises with its targets
In the spotlight after its recent strategic decisions, Meta has just completed a solid Q2. The group is taking advantage of this to nudge up its annual spending range and its forecasts for Q3. Meta's stock jumped 10% after announcing Q3 revenue forecasts that were well above expectations at
[60]
Microsoft, Meta surge after blowout results
LONDON (Reuters) -Shares in artificial intelligence heavyweights Microsoft and Meta Platforms both surged in European trading on Thursday, after blowout quarterly results after-market on Wednesday. Meta shares surged 12.2% in Frankfurt after it forecast quarterly revenue well ahead of Wall Street
[61]
Meta shares jump as Zuckerberg stands firm on AI bets
STORY: Meta's earnings and forecasts beat analysts' estimates Wednesday, as it said artificial intelligence was making big strides in its core ad businesses. The Facebook parent posted a revenue of $47.5 billion for the quarter ending in June, beating expectations. CEO Mark Zuckerberg said in a
[62]
Wall St futures hit record peaks as Meta, Microsoft results get AI boost
(Reuters) -Futures tied to the S&P 500 and Nasdaq surged to record highs on Thursday after strong earnings from tech giants Meta and Microsoft reinforced investor confidence that artificial intelligence investments are paying off. Meta Platforms soared 11.5% in premarket trading after the social
[63]
Big Tech may be breaking the bank for AI, but investors love it
(Reuters) -Big Tech is spending more than ever on artificial intelligence - but the returns are rising too, and investors are buying in. AI played a bigger role in driving demand across internet search, digital advertising and cloud computing in the April-June quarter, powering revenue growth at
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Meta reports impressive Q2 earnings, with AI-driven improvements boosting ad revenue. The company plans increased spending on AI infrastructure and talent, signaling a strong commitment to AI development.
Meta's Q2 Performance Exceeds Expectations
Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has reported a stellar second-quarter performance for 2025, surpassing Wall Street expectations. The company's revenue surged to $47.5 billion, marking a 22% increase from the previous year
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. This impressive growth was accompanied by a rise in daily users across Meta's platforms, reaching nearly 3.5 billion1
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Source: Quartz
AI-Driven Improvements Boost Ad Revenue
The company's strong performance can be largely attributed to AI-powered improvements in its advertising business. Meta's CFO, Susan Li, emphasized that while generative AI is not yet a significant revenue driver, traditional machine learning models are playing a crucial role in enhancing ad effectiveness
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.Mark Zuckerberg highlighted that new AI-powered recommendation models led to a 5% increase in ad conversions on Instagram and a 3% gain on Facebook
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. These improvements also resulted in a 5-6% increase in user engagement time across both platforms4
.Ambitious AI Investments and Future Plans
Source: The Register
Meta is doubling down on its AI investments, signaling a strong commitment to future growth in this sector. The company has raised its capital expenditure forecast for 2025 to between $66 billion and $72 billion, primarily to support its AI initiatives
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.Key AI investments include:
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Infrastructure: Meta is building massive AI compute clusters, including the gigawatt-scale "Prometheus" facility set to launch in 2026, and "Hyperion," which is planned to be the size of Manhattan
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Talent Acquisition: The company is engaged in a high-stakes talent war, offering substantial compensation packages to attract top AI researchers
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Generative AI Development: While not currently a major revenue contributor, Meta is actively working on Llama 4.1, 4.2, and future models
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Related Stories
Monetization Strategies and Platform Growth
Meta is exploring various avenues to monetize its AI capabilities across its platforms:
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Threads: The company has begun incorporating large language models (LLMs) into the recommender systems for its Twitter competitor
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WhatsApp and Instagram: Meta is accelerating efforts to integrate ads into these platforms
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AI-Powered Ad Tools: Nearly two million advertisers are using Meta's AI-generated video and image tools for creating ad content
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Source: Benzinga
Market Response and Future Outlook
The market has responded positively to Meta's performance and future plans. The company's stock price surged over 10% following the earnings report, increasing its valuation by more than $175 billion
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.For the third quarter of 2025, Meta forecasts revenue between $47.5 billion and $50.5 billion, surpassing analyst expectations
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. However, the company cautioned that year-over-year growth in the fourth quarter might slow compared to the third quarter5
.As Meta continues to invest heavily in AI, particularly in its pursuit of "superintelligence," the company remains optimistic about the long-term potential of these investments to drive growth and innovation across its platforms.
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