Meta is expected to report a 20% increase in revenue in Q2 2024 compared to Q1. The company will be helped by an increase in advertising sales due to the Olympic Games and elections in a number of countries. This was reported by Reuters.
At the same time, despite optimistic views on future earnings, investors also want to see whether the tech giant's AI spending is paying off. Meta is spending billions on the technical infrastructure needed to support and develop AI.
In April 2024, the company's revision of its annual expenses caused its market capitalization to drop by almost $170 billion in one day. However, the company still focuses on developing its large language models with open source.
The recently introduced Llama 3.1 is practically free, and developers can use and modify it as they wish. But the fact that it's free doesn't mean it's worse than the competition, as CEO Mark Zuckerberg boldly stated.
Among other things, the company is improving its ad buying products using AI. Artificial intelligence is also used to increase user engagement on social media.
In addition, Meta recently announced a new AI Studio tool that will allow creating, sharing, and developing personalized chatbots.
It is also reported that, according to analysts, Meta may benefit from a potential ban on TikTok in the United States. As a result of the ban, advertisers' spending on the company's platforms may increase in the first quarter of 2025.