Meta reported record-breaking fourth quarter results for 2024, with revenue reaching $48.39 billion and net income of $20.84 billion, significantly exceeding Wall Street expectations.
Financial Performance: Meta’s Q4 results demonstrate substantial growth with revenue up 21% and net income increasing by 49% year-over-year.
- The company achieved earnings of $8.02 per share, surpassing analyst expectations of $6.76
- Daily users across Meta’s apps reached 3.35 billion in December 2024, showing continued user base expansion
- For Q1 2025, Meta projects revenue between $39.5 billion and $41.8 billion, representing 8-15% year-over-year growth
AI Investment Strategy: Mark Zuckerberg announced ambitious plans for AI infrastructure expansion in 2025.
- Capital expenditure is expected to reach $60-65 billion in 2025, up significantly from $39.23 billion in 2024
- Plans include building a massive 2-gigawatt+ data center with 1.3 million GPUs by year-end
- This investment faces competitive pressure from Chinese AI startup DeepSeek, which claims to achieve similar results at less than 10% of Meta’s costs
Platform Updates: Meta continues to evolve its social media offerings and monetization strategies.
- The company announced plans to test advertising on Threads in the United States and Japan
- Meta’s fact-checking program is being discontinued, with Zuckerberg emphasizing a return to “free expression”
- The company maintains strong user engagement across its family of apps, including Facebook, Instagram, and WhatsApp
Political Developments: Meta’s relationship with the political establishment shows significant shifts.
- The company appointed UFC CEO Dana White, a Trump ally, to its board
- Meta contributed $1 million to Trump’s inauguration fund
- Platform changes during the White House transition resulted in automatic following adjustments for users of official accounts like @POTUS
Strategic Implications: Meta’s massive AI investments and political repositioning suggest a complex balancing act between technological advancement and regulatory considerations, while the company’s strong financial performance provides the resources to pursue these ambitious initiatives.
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