Meta the technology giant that operates Facebook, Instagram and WhatsApp, The year has started on a good foot. Your profits have doubled in the space of a year – from 5,709 million dollars at the beginning of 2023 to 12,369 million in the first quarter of 2024, or 117% – and its income has increased by 27% compared to the same period in 2023, about good news that, however, has not prevented the collapse of its titles in the market after-hours up to 18% due to the lukewarm growth forecasts for the next three months of the year. Wall Street es as.
Mark Zuckerberg, The founder and executive president of Meta, was satisfied with the start of 2024, celebrating the advances of the new version of Meta in artificial intelligence, Llama 3, as “another step towards building world-leading AI. We are seeing healthy growth in our applications and continue to make steady progress in building the Metaverse as well.”
The company based in Menlo Park, California, confirmed that they have 3.24 billion active people daily on their social networks, with an average increase of 6% in the price of its ads, $58 billion in cash, cash equivalents and negotiables, and 69,329 employees after a 10% cut in its workforce.
Everything in order except for the forecasts below what analysts expected for the second quarter of 2024, with revenues between 36,500 and 39,000 million dollars which will represent an improvement of 18% compared to 2023. The forecasts have included the negative effect that the foreign currency exchange rate may have, around 1%.
Its other brake is investment in artificial intelligence, in the midst of a digital war to keep a piece of the pie that Nvidia clearly dominates right now. Meta has communicated that increase its bet to 10,000 million dollars in that department, a chapter that has contributed to improving its ability to attract advertisers and users.
Meta maintains that these technological advances have helped it overcome the blow caused by the privacy changes implemented by Apple in 2022 and that They wiped about $10 billion from the social media giant’s revenue accounts. The company founded by Zuckerberg during his days as a university student has managed to overcome the obstacle and sign a spectacular 2023, tripling the value of its shares and signing a start to 2024 that has so far resulted in a rise of 42%.
The company launched its latest language model in April, Llama 3, a technology that will increasingly have a presence in applications such as Instagram and WhatsApp. Llama 3 is capable of instantly generating images and providing users with article summaries.
The concern of investors now lies in control spending on AI and maintain growth in the advertising chapter, with the unknown of the benefit that the law signed by the president may mean for Facebook and Instagram Joe Biden to ban Tik Tok in the United States if it does not find a new buyer within a year.