15 AI News Investors Should Not Miss

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) is an American multinational technology conglomerate offering social networking, advertising, and business insight solutions. The company is a leader in AI amongst social media stocks, with strong AI and metaverse ambitions as it tries to build diverse revenue streams.

Meta Platforms, Inc. (NASDAQ:META) announced its fiscal third-quarter earnings after the closing bell on October 30. The company beat expectations on the top and bottom lines. It reported a revenue of $40.59 billion, while analysts’ estimates were $40.29 billion. Moreover, net income was $15.69 billion, an increase of 35%.  The company’s strong quarter was driven by advancement in AI across its products and strong momentum with Meta AI, Llama adoption, and AI-powered glasses. Despite the big earnings beat, Meta shares sank in after-hours trading due to the company’s capital expenditure, up 36% to $9.2 billion. Meta CEO Mark Zuckerberg further warned of a “significant acceleration” in artificial-intelligence-related infrastructure expenses next year, sending mixed signals to investors about whether the company’s digital ad sales from its social media business would continue to cover the cost of its massive AI buildout. Dan Ives, Wedbush managing director, on CNBC’s Closing Bell, notes that Meta stock dropping is actually the “wrong reaction” here.

“The formula around building out the infrastructure is maybe not what investors want to hear in the near term, that we’re growing that. But, I just think that the opportunities here are really big, we’re going to continue investing significantly in this and I’m proud of the teams that are doing great work to stand up a large amount of capacity so that way we can deliver world-class models and world-class products.”

-Mark Zuckerberg