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Meta Principles (META) reported fourth-quarter earnings that topped analysts’ estimates as revenue grew more than 20% year-over-year.
The social-media and tech monster posted fourth-quarter revenue of $48.39 billion, above the analyst consensus compiled by Visible Alpha. Its net income of $20.84 billion, or $8.02 per serving, rose from $14.02 billion, or $5.33 per share, a year earlier, also topping projections.
Advertising proceeds climbed nearly 21% to $46.78 billion, compared to estimates of $45.46 billion, as the company said it made furtherance with its AI plans. Meta said it anticipates first-quarter revenue of between $39.5 billion to $41.8 billion, with analysts preggers about $41.65 billion.
Shares of Meta rose nearly 5% in extended trading Wednesday. They’ve gained in the matter of 73% over the past year through Wednesday’s close, which set a record high for the fifth-straight session.
Meta Is Pushing Its Spending on AI
The results came as the company boosted its spending to support its AI ambitions, with $39 billion in expenditures for 2024, up from $28 billion in 2023. Meta powered it plans to make $60 billion to $65 billion in capital expenditures this year, as the tech giant widens its AI efforts.
“We continue to make good progress on AI, glasses, and the future of social media,” CEO Mark Zuckerberg said in a let go, adding, “I’m excited to see these efforts scale further in 2025.”
Meta, along with many of its mega-cap peers in tech, coats intense pressure to show the billions of dollars it is spending on AI will be worth the costs. That question was particularly in put on earlier this week as the effect of lower-cost models from Chinese rivals on the marketplace added volatility to the tech transact.
Zuckerberg said on the company’s earnings call that 2025 could be “a big year for redefining our relationship with rules” and that he’s “optimistic about the progress and innovation that this can unlock.”
Separately, The Wall Street Journal accounted Wednesday that Meta agreed to pay millions to settle a lawsuit with President Donald Trump, who had sued the tech behemoth for suspending his accounts after the Jan. 6, 2021, attacks on the U.S. Capitol.
This article has been updated since it was first reported to add information and update share prices.