Meta Platforms Inc. (META) is set to unveil its financial performance for the fourth quarter of 2024 on Wednesday, January 29, 2025, after the market closes. Analysts are expecting revenue of $47 billion and a net income of $23.3 billion, translating to earnings per share of $6.75.. This anticipation follows a 1.73% rise in the company’s stock, which closed at $647.49 per share on Friday. However, in premarket trading, META is down $25.42 (-3.93%), sitting at $622.07.
Amid these financial projections, CEO Mark Zuckerberg has outlined an expansive vision for AI development in 2025, predicting that Meta AI will become the leading digital assistant for over a billion users. He anticipates that the Llama 4 model will set new benchmarks in AI technology, while Meta plans to develop an AI engineer to significantly enhance its research and development through code generation. To support these ambitions, Meta is investing heavily in infrastructure, with plans for a colossal 2GW+ data center, which if visualized, would span a significant portion of Manhattan. According to Zuckerberg, this project will bring approximately 1GW of computational power online, supported by over 1.3 million GPUs by year’s end. Financially, Meta is committing between $60 and $65 billion in capital expenditures for the year, aiming to expand its AI teams and continue this investment trajectory. Zuckerberg sees this as a pivotal move not just for Meta’s product evolution but also for advancing American tech leadership and sparking widespread innovation.
However, this expansion in AI coincides with organizational restructuring, as Meta has initiated plans to reduce its workforce by 5%, impacting approximately 3,600 positions. This move, targeting underperformers, is part of a broader, performance-based cut strategy that Zuckerberg has described as more extensive than typical annual management. The company intends to replace these positions later, indicating a focus on quality over quantity in its workforce.
Moreover, Zuckerberg has introduced policy changes within the company, notably reducing the emphasis on content moderation and eliminating the platform’s fact-checking mechanisms. These shifts come at a time when Meta’s relationship with the Trump administration appears to be strengthening, suggesting potential influences on its operational policies.
These developments paint a picture of Meta at a crossroads, balancing aggressive AI investment with internal restructuring and policy shifts. As Meta gears up to report its earnings, all eyes will be on how these strategic decisions correlate with financial outcomes, especially in an era where technology companies are increasingly scrutinized for their societal impact as well as their fiscal health.
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