Meta, the technology giant behind Facebook, Instagram, and WhatsApp, has had a strong start to the year. The company’s profits have doubled in the space of a year, reaching $12,369 million in the first quarter of 2024, an increase of 117%, while its income has grown by 27% compared to the same period in 2023. Despite this positive news, the company’s stock prices fell by 18% in after-hours trading due to lukewarm growth forecasts for the next quarter.
Mark Zuckerberg, Meta’s founder and executive president, expressed satisfaction with the company’s performance in 2024, highlighting the advances in artificial intelligence with the launch of Llama 3. The company reported 3.24 billion daily active users on its social networks, a 6% increase in ad prices, and significant cash reserves.
However, Meta’s forecasts for the second quarter of 2024 fell below analysts’ expectations, with revenue expected to be between $36,500 and $39,000 million. The company cited potential negative effects from foreign currency exchange rates and increased investments in artificial intelligence as factors that may impact its performance.
Despite challenges such as Apple’s privacy changes and competition in the AI space, Meta has managed to thrive in recent years. The company’s latest language model, Llama 3, aims to enhance user experiences on platforms like Instagram and WhatsApp. Investors are closely monitoring Meta’s spending on AI and advertising growth, as well as the potential impact of legislation that could affect its operations.
In conclusion, Meta’s strong financial performance and technological advancements have positioned the company for growth, despite some challenges and uncertainties in the market. With a robust user base and innovative products, Meta remains a key player in the tech industry.