Meta Platforms, formerly known as Facebook, reported strong growth in its digital advertising business in its latest quarterly earnings report. The company said that its advertising revenue grew rapidly, driven by strong demand from advertisers looking to reach the platform’s massive user base.
However, the company also revealed that its investments in artificial intelligence and the so-called metaverse had weighed on its profits. Meta has been making significant investments in AI technology to improve its products and services, as well as in building out its metaverse platform, which aims to create a virtual world where users can interact, socialize, and consume content in new ways.
Despite these investments, Meta’s overall revenue still exceeded expectations, with total revenue reaching $33.67 billion for the quarter. The company also reported a net income of $9.19 billion, a slight decrease from the same period last year.
Meta’s CEO, Mark Zuckerberg, highlighted the company’s progress in developing its metaverse platform, noting that it is still early days but that he is excited about the potential for the future. He also emphasized the importance of investing in AI technology to improve user experiences and drive growth in the long term.
Overall, Meta’s quarterly earnings report reflects the company’s continued focus on innovation and growth, even as it faces challenges in balancing its investments in new technologies with maintaining profitability. As the company continues to expand its advertising business and develop its metaverse platform, investors will be watching closely to see how these initiatives impact its financial performance in the coming quarters.