Meta Platforms Inc. posted stronger-than-expected third-quarter results on Wednesday fueled by its advertising revenue growth and its push to incorporate artificial intelligence.
But the Instagram and Facebook parent company warned that it expects a “significant acceleration” in infrastructure spending next year as it continues to pour money into developing AI.
Nearly all of Meta's revenue comes from advertising on its platforms, so a slight shortfall in user numbers also put a dent in an otherwise strong quarter. Meta said it's “family daily active people” — that is the number of users who signed into at least one of its apps (Facebook, Messenger, Instagram, WhatApp and Threads) in a day — was 3.29 billion on average for September. Analysts had expected 3.31 billion.
“The miss in its user metric, daily active people, is concerning, as Meta will need to squeeze more revenue out of its existing users as growth slows," said Emarketer analyst Jasmine Enberg. She added, though, that the company is in a good position to do so “as its AI-powered tools are boosting engagement by helping show users more of what they like and making its ads, particularly on Reels, more effective.”
For the three months ended on Sept. 30, the Menlo Park, California-based company earned $15.69 billion, or $6.03 per share, up 35% from $11.58 billion, or $4.39 per share, in the same period a year earlier.
Revenue rose 19% to $40.59 billion from $34.15 billion.
Analysts, on average, were expecting earnings of $5.22 per share on revenue of $40.21 billion, according to FactSet Research.
“We had a good quarter driven by AI progress across our apps and business,” CEO Mark Zuckerberg said in a statement. “We also have strong momentum with Meta AI, Llama adoption, and AI-powered glasses.”
For the current quarter, Meta is forecasting revenue of $45 billion to $48 billion. Analysts are expecting $46.18 billion.
“Meta’s solid quarter adds further evidence to the view that digital advertisers are choosing to spend their budget on the so-called market leaders, such as Facebook and Instagram, at the expense of the smaller social media networks, like Snap," said Investing.com analyst Jesse Cohen.
Cohen added that while AI is “clearly driving growth” at Meta, "investors appear to be disappointed over the company’s forward guidance and rising costs needed to develop AI features.”
Meta said it expects 2024 operating losses at its Reality Labs segment — which includes its virtual- and augmented-reality glasses — will “increase meaningfully” due to product development costs and other investments. Last Month, Meta teased a prototype for Orion, the holographic augmented reality glasses it's been working on for a decade. But Orion doesn't have a release date yet, in large part because it is currently so expensive to make. Zuckerberg called it a “glimpse of the future.”
Meta's shares slipped about 3% in after-market trading following the earnings report.
FILE - Mark Zuckerberg wears a pair of Orion AR glasses during the Meta Connect conference on Sept. 25, 2024, in Menlo Park, Calif. (AP Photo/Godofredo A. Vásquez, File)
Diwali is the most important festival of the year in India — and for Hindus in particular.
It is celebrated across faiths by more than a billion people in the world’s most populous nation and the diaspora. Over five days, people take part in festive gatherings, fireworks displays, feasts and prayer.
Diwali is derived from the word “Deepavali,” which means “a row of lights.” Celebrants light rows of traditional clay oil lamps outside their homes to symbolize the victory of light over darkness and knowledge over ignorance.
The dates of the festival are based on the Hindu lunar calendar, typically falling in late October or early November.
This year, the holiday is being celebrated on Oct. 31 and Nov. 1. In the U.S., Diwali falls on Halloween this year, which has triggered quite a few #Diwaloween memes on social media where some celebrants can be seen lighting diyas in their scary costumes or handing out laddoos to trick-or-treaters.
While Diwali is a major religious festival for Hindus, it is also observed by Sikhs, Jains and Buddhists. The origin story of Diwali varies depending on the region. All these stories have one underlying theme — the victory of good over evil.
In southern India, Diwali celebrates the victory of Lord Krishna’s destruction of the demon Naraka who is said to have imprisoned women and tormented his subjects. In northern India, Diwali honors the triumphant return of Lord Rama, his wife Sita, and brother Lakshmana, from a 14-year exile in the forest.
The festival brings with it a number of unique traditions, which also vary by the region. What all celebrations have in common are the lights, fireworks, feasting, new clothes and praying.
—In southern India, many have an early morning warm oil bath to symbolize bathing in the holy River Ganges as a form of physical and spiritual purification.
—In the north, worshipping the Goddess Lakshmi, who symbolizes wealth and prosperity, is the norm.
Gambling is a popular tradition because of the belief whoever gambled on Diwali night would prosper throughout the year. Many people buy gold on the first day of Diwali, known as Dhanteras — an act they believe will bring them good luck.
Setting off firecrackers is a cherished tradition, as is exchanging sweets and gifts among friends and family. Diwali celebrations typically feature rangoli, which are geometric, floral patterns drawn on the floor using colorful powders. This year, several northern Indian states, including the capital New Delhi, are instituting partial or total fireworks bans to combat rising pollution levels during Diwali.
Buddhists, Jains and Sikhs have their own Diwali stories:
—Jains observe Diwali as the day the Lord Mahavira, the last of the great teachers, attained nirvana, which is liberation from the cycle of birth, death and rebirth.
—Sikhs celebrate Bandi Chhor Divas — a day that overlaps with Diwali — to commemorate the release of Guru Hargobind, a revered figure in the faith, who had been imprisoned for 12 years by the Mughal emperor Jahangir.
—Buddhists observe the day as one when the Hindu Emperor Ashoka, who ruled in the third century B.C., converted to Buddhism.
This year, Mattel has released its “Barbie Signature Diwali Doll” by designer Anita Dongre who wrote on Instagram that her Barbie represents “the fashion-forward modern women who wears India on her sleeve with pride.”
In contrast to her earliest iteration in 1996 who was clad in a bright pink sari or the 2012 avatar who was packaged with a “monkey friend,” Diwali Barbie is fashionably dressed in a lehnga, an ankle length embroidered skirt with motifs from Dongre’s home state of Rajasthan, a cropped blouse and vest.
This doll, priced at $40, sold out on day one on Mattel’s website.
Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.
FILE- An Indian potter makes earthen lamps ahead of Diwali festival in Prayagraj, India, Oct. 27, 2021. (AP Photo/Rajesh Kumar Singh, File)
FILE- Morning haze envelops the skyline the day after tens of thousands of people set off massive firecrackers to celebrate the Hindu festival of Diwali in New Delhi, India, Nov. 5, 2021. (AP Photo/Altaf Qadri, File)
FILE- Children play with firecrackers during Diwali celebrations in New Delhi, India, Nov. 4, 2021. (AP Photo/Altaf Qadri, File)
FILE- An Indian family lights firecrackers to celebrate Diwali, the Hindu festival of lights, in Prayagraj, in the northern state of Uttar Pradesh, India, Oct. 24, 2022. (AP Photo/Rajesh Kumar Singh, File)
FILE- People lights firecrackers to celebrate Diwali, the festival of lights, in Ahmedabad, India, Oct. 24, 2022. (AP Photo/Ajit Solanki, File)
FILE- Hindu women light oil lamps at the Banganga pond as they celebrate Dev Diwali festival in Mumbai, India, Nov. 7, 2022. (AP Photo/Rafiq Maqbool, File)
FILE- People crowd a market as they shop ahead of Diwali festival in Mumbai, India, Nov. 5, 2023. (AP Photo/Rafiq Maqbool, File)
FILE- A residential building is decorated with lanterns and lights during Diwali, the festival of lights in Mumbai, India, Nov. 12, 2023. (AP Photo/Rafiq Maqbool, File)
A record 2.51 million earthen oil lamps are lit along the Saryu river during Deepotsav celebrations on the eve of Diwali, creating a new Guinness World Record, in Ayodhya, India, Wednesday, Oct. 30, 2024. (AP Photo/Rajesh Kumar Singh)
Fire crackers and smoke fill the city skyline as a part of Diwali celebrations at Shivaji Park in Mumbai, India, Wednesday, Oct. 30, 2024.(AP Photo/Rajanish Kakade)
