As the company forecast quarterly revenue well above analyst expectations, Meta Platforms Inc. Mark Zuckerberg, the company’s CEO, claimed that the deployment of AI was assisting the business in increasing traffic to Facebook and Instagram as well as generating more money from ad sales.
The value of Meta shares increased by almost $50 billion in after-hours trading, continuing a rise in tech equities that began after Microsoft Corp. and Google parent company Alphabet Inc. reported excellent results on Tuesday.
In addition to exceeding forecasts for the first-quarter profit and revenue, which increased for the first time in over a year, Meta also decreased its cost outlook range for the year. The company has undergone a number of pricey overhauls to support its primary industry, including a sizable effort to increase AI capacity.
The corporation has been sluggish to implement AI-friendly hardware and software systems for its main operation. In terms of developing our AI infrastructure, we are currently not behind,” Zuckerberg stated on a conference call. And on the contrary, we are now able to conduct extensive leading work in this field.
Between January and March, according to Meta, users spent 24% more time on Instagram. James Cordwell, an analyst at Atlantic Equities, believes that Meta, like Alphabet, has substantially invested in AI for their business’ advertising division.