Facebook’s Parent Meta’s Profit Rises 35%

On Wednesday, Silicon Valley's Meta company reported double-digit revenue and profit growth for the third quarter, driven largely by advancements in its systems for advertisement targeting and suggesting relevant posts and videos to users. The improvements came from its continued investments in artificial intelligence, the company said.

The NY Times reports revenue was $40.6 billion, up 19 percent from a year earlier and above Wall Street estimates of $40.2 billion, according to data compiled by FactSet, a market analysis firm. Profit was $15.7 billion, up 35 percent from $11.6 billion a year earlier.

But Meta also said it would continue a huge spending spree that has spooked Wall Street. The company said it spent $23.2 billion on costs and expenses and $9.2 billion in capital expenditures in the third quarter, including on computing infrastructure for A.I., building the immersive world of the metaverse and other expenses. It also raised its annual spending forecast to $38 billion to $40 billion, up from the $37 billion to $40 billion it had projected in July.

The third quarter figures underscored how Meta’s digital advertising business continues to buttress its extravagant spending. Executives have said its huge investments in A.I. and the metaverse will improve all of its services. The company has raised its spending forecast several times this year.

Some of the investments have yielded unexpected hits. Sales of Meta’s Ray-Ban smart glasses, which allow people to take photos, video and listen to music through the frames, have exceeded expectations and have been in demand at Ray-Ban retail stores across Europe, the company has said.