Meta to report earnings in the fourth quarter in the middle of Deepseek Mania and Balloning of AI investments | Meta

Meta reports earnings for the fourth quarter of 2024 after US stock markets close on Wednesday.

Analysts are likely to ask about Mark Zuckerberg’s plans to spend between $ 60 billion. And $ 65 billion. On the AI ​​infrastructure in 2025. It’s up from the $ 50 billion. Dollars, as CEO said he expected to spend at the end of the last quarter. But when Meta faces increased competition, especially from the New Player Deepseek AI, the company hits its AI effort.

Earlier this week, Meta announced that it was rolling a more personal AI assistant. The technology giant also claims that Meta AI is the most widely used virtual assistant, although it is difficult to avoid using it on platforms like Instagram and WhatsApp by design.

Some analysts continue to be Bullish about Meta’s AI capacities despite the Chinese competitor’s Deepseek overnight.

“Deepseek is a fantastic LLM model that is competitive with Metas Llama and Openais Chatgpt … The comparisons end there as we expect a doubling of the AI ​​vision/Build-out from both Tech-Stalwarts Meta and MSFT, as we will be another strong sign of trust this AI revolution has just begun, ”said Dan Ives of Wedbush Securities. Microsoft reported his quarterly earnings the same day as Meta.

Other analysts expect AI to take a back seat to worry about Zuckerberg’s decision to get rid of third -party invoicing programs.

“Expect a more defensive tone under Meta’s Q4 earnings call, especially during the Q&A AS questions abounding about the company that closes its third-party invoices,” said Forrester VP research director, Mike Proulx. “Meta’s typical AI advancement update will be overshadowed by analysts’ concern about the advertiser’s fire safety and user back.”

Days after Meta announced that it was removing its third-party factchecker program, news broke out that the company would reduce its workforce by 5%-this time targeting what it called “low artists”.

“Despite a pretty crazy start to 2025, Meta’s Q4, 2024 results are likely to demonstrate continued corporate moment on the way this year,” said Proulx. “With yet another 5% reduction in announced workforce, Meta’s 2024 ‘Effectality year’ will be trumpet in 2025 with a seeming year of ‘intensity’.”

Zuckerberg is also expected to be asked about a leaked internal memo, which indicated that the company’s reality labs department had beaten all its sales and user goals it drives the smart beam glasses.

There has also been a reported leadership shake. Reality laboratories are brought closer to the main business and led by Metas COO, Javier Olivan, As per the information. It is unclear whether Reality Labs’ current COO, Dan Reed, remains with the company.