Meta's Financials Soar Amid AI Spending Spree, But Social Media Addiction Trial Looms Large
In a move that has left Wall Street analysts and investors bullish, Meta reported a record-breaking $59.89 billion in revenue for its fourth quarter of 2025, far surpassing expectations of $58.59 billion. The company's stock price surged nearly 10% in after-hours trading following the release, as CEO Mark Zuckerberg touted a "major AI acceleration" that is expected to propel the tech giant into new growth territories.
The earnings report comes on the heels of Meta's massive investment in artificial intelligence infrastructure, with the company announcing a deal worth up to $6 billion with Corning to supply fiber optic cables for its datacenters. Zuckerberg described this expansion as a "game-changer" that will unlock the ability to build completely new products and transform how we work.
However, concerns about Meta's high spending on AI remain. The company expects to spend between $162 billion and $169 billion in 2026, with most of that money going towards infrastructure costs and employee compensation. Investors have previously expressed worries about an unstable AI financial bubble, but Zuckerberg maintains that these investments will yield long-term profits.
Meanwhile, Meta's focus is shifting away from virtual reality and the metaverse, a $10 billion area of investment for Zuckerberg. The company has begun laying off over 1,000 employees who focused on virtual reality, citing losses of $6.02 billion in the Reality Labs division last year. Despite this, Zuckerberg expressed optimism about the potential for Meta's glasses and wearables business.
As tech giants invest heavily in AI infrastructure, datacenters are coming under scrutiny due to their environmental impact and strain on energy bills. Several states, including Georgia, Maryland, and Oklahoma, are considering legislation to regulate or ban new datacenter construction until further notice.
In a separate development, Meta CEO Mark Zuckerberg is set to testify in a landmark trial that alleges social media companies made their products intentionally addictive and harmful to young people. The case marks the first time tech giants will have to answer for these allegations in open court, with prosecutors likely to scrutinize Zuckerberg's responses under intense questioning.
With its strong financials and ambitious AI plans, Meta appears to be navigating a challenging landscape. However, it remains to be seen how the company's investments will ultimately play out in terms of profits and social responsibility.
In a move that has left Wall Street analysts and investors bullish, Meta reported a record-breaking $59.89 billion in revenue for its fourth quarter of 2025, far surpassing expectations of $58.59 billion. The company's stock price surged nearly 10% in after-hours trading following the release, as CEO Mark Zuckerberg touted a "major AI acceleration" that is expected to propel the tech giant into new growth territories.
The earnings report comes on the heels of Meta's massive investment in artificial intelligence infrastructure, with the company announcing a deal worth up to $6 billion with Corning to supply fiber optic cables for its datacenters. Zuckerberg described this expansion as a "game-changer" that will unlock the ability to build completely new products and transform how we work.
However, concerns about Meta's high spending on AI remain. The company expects to spend between $162 billion and $169 billion in 2026, with most of that money going towards infrastructure costs and employee compensation. Investors have previously expressed worries about an unstable AI financial bubble, but Zuckerberg maintains that these investments will yield long-term profits.
Meanwhile, Meta's focus is shifting away from virtual reality and the metaverse, a $10 billion area of investment for Zuckerberg. The company has begun laying off over 1,000 employees who focused on virtual reality, citing losses of $6.02 billion in the Reality Labs division last year. Despite this, Zuckerberg expressed optimism about the potential for Meta's glasses and wearables business.
As tech giants invest heavily in AI infrastructure, datacenters are coming under scrutiny due to their environmental impact and strain on energy bills. Several states, including Georgia, Maryland, and Oklahoma, are considering legislation to regulate or ban new datacenter construction until further notice.
In a separate development, Meta CEO Mark Zuckerberg is set to testify in a landmark trial that alleges social media companies made their products intentionally addictive and harmful to young people. The case marks the first time tech giants will have to answer for these allegations in open court, with prosecutors likely to scrutinize Zuckerberg's responses under intense questioning.
With its strong financials and ambitious AI plans, Meta appears to be navigating a challenging landscape. However, it remains to be seen how the company's investments will ultimately play out in terms of profits and social responsibility.