Meta-platforms(Nasdaq: Meta) demonstrated an exceptional financial force in the fourth quarter of 2024 (ending on December 31, 2024) January 29With income and profits exceeding the expectations of analysts’ consensus.
Unsurprisingly, Meta’s shares have increased by almost 9% in the days that followed, and although the title has since abandoned some of these gains, it is still up approximately 3%. Investors are impressed by the force of the main social media and digital advertising activities of the company, as well as the success of its various strategic artificial intelligence initiatives (AI) in the current difficult environment.
Total turnover increased by 21% from one year to another to $ 48.4 billion, before Wall Street’s goal of $ 47 billion. The profit diluted by Action (BPA) also increased by 50% from one year to the next to $ 8.02, considerably higher than consensual estimates of $ 6.76.
Although meta-actions recently experienced impressive growth, there is always a significant range for future growth, which could increase stock in 2025.
Meta has implemented a multiple faceted AI strategy that extends over several areas, including the development of infrastructure optimized by AI (Open Source models and the capacity of the data center) and the consumption applications infused to AI.
Meta has planned a capex of nearly 60 billion at $ 65 billion for the year 2025, mainly involving investments in AI -generating initiatives and in its core business. The company invests massively in the expansion of the capacity of the data center to build a calculation power to train and deploy advanced AI models.
Last month, Meta announced that it would bring gigawatt electric power of the capacity of the online data center in 2025. For in mind, the company also built an AI data center with two gigawatt (or potentially even more big). To put the size of this data center in perspective, CEO Mark Zukerberg said that he “covered an important part of Manhattan” if she had to introduce herself.
Meta also quickly progresses in the development space of the large open source model (LLM). The upcoming launch of the Multimodal and Open-Source Llama 4 model with agentic AI capacities is significant progress in the META AI strategy. Faced with the increase in competition from the Chinese start-up Deepseek, the need for American Open Source standards to develop and manage large language models has become strategically essential for the national advantage. Meta also undertakes to integrate some of Deepseek’s cutting -edge technology capabilities into their systems.
In addition to the development of infrastructure, Meta has also made rapid progress in the space of agentic AI. The Meta assistant has very intelligent and personalized of the company had increased its use to more than 700 million monthly active users worldwide by the end of 2024. Models on Facebook and Instagram.
Unsurprisingly, Zuckerberg also expects to extend the use of Meta AI to more than a billion users in 2025.
The main social media and Meta’s digital advertising also show remarkable potential of strength and cash generation, driven by its Personalization and Recommendation System based on AI and marketing strategies fueled by AI. The family applications family segment (including social media platforms such as Facebook, Instagram, Messenger, Threads and Whatsapp) increased at a healthy pace, with more than 3.3 billion people using at least One of these applications daily in December 2024.
Despite being an apparently old platform, Facebook notes an increase in user engagement and has reached more than 3 billion monthly active users. Instagram has also become a prominent platform for the discovery of new content and notes more than 4.5 billion times in its short-circuit video content daily. Threads has built a 320 million monthly active user base, while WhatsApp is also progressing to become the main messaging platform in the United States
Thanks to exceptionally wide customers and a robust commitment, Meta’s social media platforms remain an important choice for advertisers around the world. Unsurprisingly, the family of advertising revenues of applications increased by 21% from one year to the next to $ 46.8 billion in the fourth quarter. Meta also reported a leap of 14% in annual sliding of the average price per advertisement and an increase of 6% on the other of the number of advertising prints in the fourth quarter.
Integration of the Andromeda automatic learning system, developed in partnership with Nvidiahas also helped improve the efficiency of advertising. This system has made it possible to use 10,000 times more complex models for advertising announcements.
The use of complex AI models has helped Meta to improve the personalization and relevance of ads, leading to an increase of almost 8% of the quality of advertisements according to the objectives tested. All of this resulted in better yields for advertisers and improving user engagement.
Meta is traded at 27.5 times the long -term benefits, which may seem rich initially. However, the evaluation is reasonable if we consider the exceptional technological prowess of the company in digital advertising, domination in social media, the solid trajectory of growth of its finances, its strong AI strategy and its expansion successful in new markets.
In addition to recent financial performance, Meta’s expected growth trajectory supports its evaluation. Analysts expect Meata’s income and profit by action to increase from one year over the other by 14.6% and 5.4%, respectively, during the year 2025. 2024.
In addition, the company has 77.8 billion dollars in cash on its assessment, which gives it significant financial flexibility to finance ambitious capex plans while continuing to return the value to shareholders as dividends and buyouts of action . Meta is definitely a convincing purchase at the moment.
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Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. Manali Pradhan Has no position in the actions mentioned. The Motley Fool has positions and recommends Meta Platforms and Nvidia. The Word’s madman has a Disclosure policy.
