![]() The company left open the possibility that it could increase capital expenditures as it builds products for generative AI, an emerging technology that can craft human-like writing, art and other content. Analysts had forecast $7.2 billion in capital expenditures in the quarter, based on the company's annual forecast of $30 billion to $33 billion, which it kept unchanged. ![]() Spending on the AI retooling has spiked the company's capital expenditures, which came in slightly under expectations at $7.1 billion for the quarter. The social media giant faced a bruising 2022 as a pandemic-era e-commerce boom sputtered, while rivals like TikTok captured young users and Apple Inc's privacy updates cut access to the user data around which it built its ads business. Meta's strong guidance for Q2 revenue is another indicator that the company may be starting to come out of the woods." "In this economic environment-and after the disaster that was 2022-3% year over year revenue growth is an accomplishment. The results indicated that austerity drive was "off to a stronger than expected start for Meta," said Insider Intelligence principal analyst Debra Aho Williamson. Meta has also kicked off an aggressive cost-cutting drive, with plans to eliminate 21,000 jobs and flatten its middle-management structure as it works towards Zuckerberg's goal of turning 2023 into the "year of efficiency". "So as a consumer we're maybe not seeing the fruits of their labor in that area, but it certainly seems as if they are able to use more advanced algorithms to maintain a certain level of ad targeting." ![]()
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