Investors will want to see if Meta Platforms' expenditure on artificial intelligence is beginning to pay off. The company is likely to post a 20% increase in quarterly revenue, aided by high ad sales spurred by the Olympics and elections in numerous countries.
The social media behemoth is investing billions in IT infrastructure to promote AI research, much like its industry competitors Microsoft and Google's parent company, Alphabet. In a single day in April, Meta's market capitalisation was reduced by approximately $170 billion due to an upward revision of full-year costs.
A spike in ad sales was masked by Alphabet's warning last week that capital costs would remain high this year, which caused its shares to decline.
Meta is placing its money on an open-source strategy to advance generative AI.
The business said this week that developers can use and alter its artificial intelligence models for free. Its Llama 3.1 model is primarily free.
To increase engagement on its social media platforms, it has added new AI capabilities, such a chat assistant, and enhanced its ad-buying products using AI technologies. It said on Monday that it will release AI Studio, a new tool that lets users develop, share, and customise AI chatbots.
Analysts at Jefferies stated, "We are bullish on Meta's position as a key pillar of open-source AI," and mentioned that the firm would be able to generate more income by licensing its AI models or developing AI applications.
This year, Meta shares have increased 32%, while the tech-heavy Nasdaq Composite index has increased by about 16%.
When the firm releases its second-quarter earnings on Wednesday, it will also need to demonstrate the strength of its bread and butter ad business.
Positive news for Meta came from GroupM, one of the biggest media purchasing companies in the world, which increased its estimate of global advertising growth to 7.8% in June from 5.3% in December.
On Tuesday and Thursday, respectively, smaller ad-dependent businesses Pinterest and Snap are expected to release their results.
"We remain positive on Meta and think Reels, Messaging and AI-driven ad improvements are still early, and could lead to positive product surprises and revenue upside," wrote analysts at BofA Securities.
"With political spend, and potential TikTok ban in 1Q'25, Meta could also see an ad spend benefit in 2H'24."
(Source:www.theprint.in)
The social media behemoth is investing billions in IT infrastructure to promote AI research, much like its industry competitors Microsoft and Google's parent company, Alphabet. In a single day in April, Meta's market capitalisation was reduced by approximately $170 billion due to an upward revision of full-year costs.
A spike in ad sales was masked by Alphabet's warning last week that capital costs would remain high this year, which caused its shares to decline.
Meta is placing its money on an open-source strategy to advance generative AI.
The business said this week that developers can use and alter its artificial intelligence models for free. Its Llama 3.1 model is primarily free.
To increase engagement on its social media platforms, it has added new AI capabilities, such a chat assistant, and enhanced its ad-buying products using AI technologies. It said on Monday that it will release AI Studio, a new tool that lets users develop, share, and customise AI chatbots.
Analysts at Jefferies stated, "We are bullish on Meta's position as a key pillar of open-source AI," and mentioned that the firm would be able to generate more income by licensing its AI models or developing AI applications.
This year, Meta shares have increased 32%, while the tech-heavy Nasdaq Composite index has increased by about 16%.
When the firm releases its second-quarter earnings on Wednesday, it will also need to demonstrate the strength of its bread and butter ad business.
Positive news for Meta came from GroupM, one of the biggest media purchasing companies in the world, which increased its estimate of global advertising growth to 7.8% in June from 5.3% in December.
On Tuesday and Thursday, respectively, smaller ad-dependent businesses Pinterest and Snap are expected to release their results.
"We remain positive on Meta and think Reels, Messaging and AI-driven ad improvements are still early, and could lead to positive product surprises and revenue upside," wrote analysts at BofA Securities.
"With political spend, and potential TikTok ban in 1Q'25, Meta could also see an ad spend benefit in 2H'24."
(Source:www.theprint.in)
Homepage
Send to a friend
Printable version
Share
