Meta’s Earnings Beat Sparks After-Hours Rally Despite Aggressive AI Investment Plan
Meta Platforms Inc. delivered a robust fourth-quarter performance, surpassing analyst estimates with earnings of $8.88 per share on $59.9 billion revenue. The social media giant's shares surged over 10% in extended trading as investors shrugged off plans for massive AI infrastructure spending projected to reach $115-$135 billion by 2026.
The company's Reality Labs division continues to hemorrhage cash, posting a $6 billion loss despite generating $955 million in revenue. Meta's strategic moves include a $14.3 billion acquisition of 49% stake in Scale AI, bringing CEO Alexandr Wang aboard as chief AI officer.
Daily active users across Meta's ecosystem grew to 3.58 billion, demonstrating the platform's enduring reach. CEO Mark Zuckerberg characterized 2025 as a year of strong business performance, though the company's heavy bets on artificial intelligence infrastructure raise questions about future profitability.
