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Meta posts sharply higher Q4 profit, revenue, topping Wall Street's expectations

TECH

Meta posts sharply higher Q4 profit, revenue, topping Wall Street's expectations
TECH

TECH

Meta posts sharply higher Q4 profit, revenue, topping Wall Street's expectations

2025-01-30 08:11 Last Updated At:08:20

SAN FRANCISCO (AP) — Meta Platforms Inc. posted sharply higher profit and revenue for its fourth quarter on Wednesday, thanks to higher ad revenue on its social media properties, sending its shares up in after-hours trading even as it forecast increasing expenses on its artificial intelligence efforts.

CEO Mark Zuckerberg said he expects 2025 to “be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant.”

The Menlo Park, California-based company earned $20.83 billion, or $8.02 per share, in the October-December quarter. That's up 49% from $14.02 billion, or $5.33 per share, in the same period a year earlier.

Revenue grew 21% to $48.39 billion from $40.11 billion.

Analysts, on average, were expecting earnings of $6.76 per share on revenue of $47 billion, according to a poll by FactSet.

“We continue to make good progress on AI, glasses, and the future of social media,” Zuckerberg said in a statement.

For the current quarter, Meta said expects revenue of $39.5 billion to $41.8 billion. Analysts are expecting revenue at the high end of that range — $41.68 billion.

The company also said it expects expenses in the range of $114 billion to $119 billion, driven by infrastructure costs and employee compensation. Meta had 74,067 employees as of Dec. 31, up 10% from a year earlier.

“Meta’s Q4 performance underscores the company’s resilience in a still-uncertain digital ad market. By beating both earnings and revenue estimates, they’ve demonstrated that cost discipline and efficiency gains are paying dividends,” said Jesse Cohen, an analyst with Investing.com. “However, the real headline is their commitment to aggressive capital expenditures. This signals Meta is doubling down on its AI infrastructure and metaverse ambitions, even as investors grapple with the costs.”

Separately, Meta has agreed to pay roughly $25 million to settle a 2021 lawsuit that President Donald Trump brought against the company and Zuckerberg after Trump's accounts were suspended following the Jan. 6, 2021, attack on the U.S. Capitol.

“This is also going to be a big year for redefining our relationship with governments,” Zuckerberg said in a conference call with analysts. “We now have a U.S. administration that is proud of our leading companies, prioritizes American technology winning, and that will defend our values and interests abroad. And I’m optimistic about the progress and innovation this is going to unlock.”

Meta's stock rose $13.53, or 2%, to $690.02 in after-hours trading.

FILE - Mark Zuckerberg talks about the Orion AR glasses during the Meta Connect conference on Sept. 25, 2024, in Menlo Park, Calif. (AP Photo/Godofredo A. Vásquez, File)

FILE - Mark Zuckerberg talks about the Orion AR glasses during the Meta Connect conference on Sept. 25, 2024, in Menlo Park, Calif. (AP Photo/Godofredo A. Vásquez, File)

LEXINGTON, Ky. (AP) — Otega Oweh scored 20 points and No. 17 Kentucky took advantage of its size to start the second half to pull away for an 82-61 win over Vanderbilt on Wednesday night.

The Wildcats (18-8, 7-6 Southeastern Conference) led 41-40 at the half, but focused on going inside for their first three baskets of the second half and forced the Commodores to take a timeout three minutes in.

Amari Williams added 17 points for the Wildcats.

Devin McGlockton led Vanderbilt (17-9, 5-8) with 14 points and 10 rebounds. The Commodores only shot 30% from the field in the second half — including 1 for 10 on 3-pointers — after shooting 49% in the first half.

Vanderbilt: The Commodores continued a troubling trend in second halves of conference games. They have allowed opponents to shoot 56% in the second half, 45% on 3-pointers. Kentucky shot 65% in the second half and 50% on 3s.

Kentucky: The Wildcats have only been at full strength seven times this season. They played without starters Lamont Butler (shoulder) and Jaxson Robinson (wrist) for the second straight game. Using a point guard by committee, freshmen Travis Perry and Colin Chandler combined for 13 points and seven rebounds.

After Vanderbilt had got within three points at 47-44, Kentucky went on a 12-2 run to open a double-digit lead at 59-46. Williams and Carr scored two baskets each and Koby Brea ended it with a 3-pointer.

The Commodores dominated the paint in the first half, outscoring the Wildcats 20-12 inside and holding an 18-12 rebounding edge, including eight offensive boards. Kentucky reversed that in the second half, winning the rebounding battle 18-12 and 20-14 in the paint.

Both teams play on Saturday, with Vanderbilt hosting No. 25 Mississippi and Kentucky traveling to No. 4 Alabama.

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AP college basketball: https://apnews.com/hub/ap-top-25-college-basketball-poll and https://apnews.com/hub/college-basketball

Kentucky's Otega Oweh (00) goes up between, from left, Vanderbilt's Chris Manon (30), Tyler Nickel (5) and Jason Edwards during the first half of an NCAA college basketball game in Lexington, Ky., Wednesday, Feb. 19, 2025. (AP Photo/James Crisp)

Kentucky's Otega Oweh (00) goes up between, from left, Vanderbilt's Chris Manon (30), Tyler Nickel (5) and Jason Edwards during the first half of an NCAA college basketball game in Lexington, Ky., Wednesday, Feb. 19, 2025. (AP Photo/James Crisp)

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