Meta and Microsoft Experience Robust Financial Growth Fueled by AI Initiatives

In 2024, the social media titan Meta posted remarkable financial results, revealing a considerable boost in profits and revenue while setting ambitious plans for expanding its artificial intelligence (AI) infrastructure in the upcoming year.

Impressive Financial Performance by Meta

As the parent company of Facebook, Instagram, and WhatsApp, Meta witnessed a significant upswing in its financial metrics, with net income soaring 59% to $62.36 billion for the entirety of the year. In the final quarter alone, profits surged 49% to reach $20.84 billion.

Revenue, too, experienced substantial growth, standing at $164.5 billion—an increase of 22% from the previous year, 2023. This rise was largely driven by enhanced advertising performance. Ad prices climbed by 10%, and impressions across platforms saw an 11% rise.

Mark Zuckerberg, Meta's CEO, expressed his enthusiasm about the company’s progress, saying, "We continue to make good progress on AI, glasses, and the future of social media." He highlighted the potential to scale these initiatives further in 2025.

Meta's platforms also continued to attract users, with daily active users hitting 3.35 billion in December 2024, marking a 5% increase compared to the prior year.

Anticipating the future, Meta plans substantial infrastructure investments with capital expenditures expected to range between $60-65 billion for 2025, primarily allocated towards AI advancements. They project total expenses to be in the vicinity of $114-119 billion.

Steady Growth in Microsoft's Earnings

Simultaneously, Microsoft reported a 10% increase in its profit for the October to December quarter, benefiting from its extensive investments aimed at advancing its AI technologies.

During this period, Microsoft's net income was reported at $24.1 billion.

The company's cloud-focused business division, featuring the prominent Azure computing platform, saw a 19% increase in sales compared to the previous year, reaching $25.5 billion, just shy of the $25.83 billion projected by FactSet analysts.

Moreover, Microsoft's productivity business segment, encompassing its Office suite and other workplace solutions, expanded by 14% to achieve $29.4 billion.

This period of robust financial growth for both companies underlines the transformative impact of AI investments, paving the way for further technological advancements and market expansion.