Meta reported $47.52 billion in income for its second quarter ending in June on Wednesday, a 22% year-over-year enhance and better than the $44.8 billion analysts anticipated. On Thursday, Meta inventory reached a file excessive of $784.75, surpassing the earlier file shut of $738.09 reached on June 30.
Meta CEO Mark Zuckerberg said on a name on Wednesday with analysts that progress within the quarter was induced by means of Meta’s AI know-how, which allowed the corporate to drive extra promoting income.
Nicola Mendelsohn, head of worldwide enterprise group at Meta, echoed Zuckerberg’s remarks. In a LinkedIn put up on Wednesday, Mendelsohn wrote that the quarter’s “sturdy efficiency was pushed largely by AI, unlocking higher effectivity and features throughout our advertisements system.”
On the time of writing, Meta’s market worth was $1.96 trillion, up about 11.5% on Thursday morning.
One contributor to Meta’s surge in income was good glasses. Meta launched the Ray-Ban Meta frames in partnership with eyewear firm EssilorLuxottica in October 2023. The system permits customers to take photographs, work together with Meta AI, and make calls. The glasses have bought greater than two million pairs since launch, with EssilorLuxottica revealing in its earnings report earlier this week that gross sales of the frames greater than tripled for the primary half of the 12 months in comparison with the identical time final 12 months.
The surprising success of the Ray-Ban Metas prompted Meta to launch one other pair, this time in partnership with Oakley, final month.
Throughout Meta’s second-quarter earnings name, Zuckerberg predicted that good glasses would substitute different devices because the “main computing system,” changing into the primary technique customers work together with AI.
“I proceed to suppose that glasses are mainly going to be the best kind issue for AI,” Zuckerberg mentioned on the decision.
Meta CEO Mark Zuckerberg wears the Ray-Ban Meta glasses. Photograph by Gilbert Flores/Selection through Getty Pictures
Whereas Meta introduced in additional income than anticipated final quarter, the tech big can be projecting to spend extra on AI bills.
Meta said within the earnings report Wednesday that capital expenditures, together with AI-related prices and funds on monetary leases, would value at the very least $66 billion this 12 months, up from a earlier forecast of at the very least $64 billion. Expenditures for the quarter have been $17 billion.
Earlier than the earnings report was revealed, Zuckerberg penned a weblog put up about his imaginative and prescient for AI — to carry superintelligence, or AI that surpasses human mind, into the arms of each particular person. The Meta CEO mentioned he goals to provide individuals “higher company” to form the world, contrasting his strategy with “others within the business” who imagine that AI ought to first automate all work earlier than humanity lives on a measured quantity of its output.
Meta has closely invested in superintelligence, providing new hires as much as $200 million in compensation packages. Final month, Meta introduced a new Superintelligence Labs staff, assembling expertise from AI firms like OpenAI, Google, and Anthropic to work on the trouble.
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Meta reported $47.52 billion in income for its second quarter ending in June on Wednesday, a 22% year-over-year enhance and better than the $44.8 billion analysts anticipated. On Thursday, Meta inventory reached a file excessive of $784.75, surpassing the earlier file shut of $738.09 reached on June 30.
Meta CEO Mark Zuckerberg said on a name on Wednesday with analysts that progress within the quarter was induced by means of Meta’s AI know-how, which allowed the corporate to drive extra promoting income.
Nicola Mendelsohn, head of worldwide enterprise group at Meta, echoed Zuckerberg’s remarks. In a LinkedIn put up on Wednesday, Mendelsohn wrote that the quarter’s “sturdy efficiency was pushed largely by AI, unlocking higher effectivity and features throughout our advertisements system.”
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