Meta Platforms reported a strong Q1 with EPS of $10.44 beating expectations, but much of the beat was due to an $8.03 billion tax benefit, masking weaker core performance and rising capital expenditures. Meta's AI and Reality Labs investments are costly with uncertain revenue, causing free cash flow to decline despite revenue growth. In contrast, Microsoft also increased spending but has secured large, contracted AI revenues, showing strong margins and returning cash to shareholders. Microsoft's AI business is already generating significant revenue, making its position more stable compared to Meta's speculative AI investments. Investors should note Meta's heavy reliance on advertising and high AI spending risks if ad revenue falls.
In 2026, several small-cap stocks in the Russell 2000 index surged over 400%, driven by AI infrastructure demand. ETFs like Vanguard Russell 2000 Growth (VTWG) and Inspire Small/Mid Cap (ISMD) held key winners such as Applied Optoelectronics, Aehr Te...
Meta acquired Within, the studio behind the VR fitness game Supernatural, in 2023 after a costly antitrust battle. Despite layoffs and stopping new content, user protests led Meta to allow the Supernatural team to form an independent company called S...
Nvidia's latest Q1 earnings and Computex keynote spotlight accelerating demand for AI infrastructure, driven largely by improvements in recommendation systems. These systems are crucial for Meta's AI initiatives, enhancing content understanding and d...
Meta has introduced the Meta Business Agent, an AI-powered tool for businesses to handle customer inquiries, recommend products, and book appointments across WhatsApp, Messenger, and Instagram. This feature is part of a new subscription tier under Me...
Meta has introduced its AI customer support bot, Meta Business Agent, globally on WhatsApp Business, enhancing communication for small and medium businesses. The AI can handle customer queries, recommend products, book appointments, and escalate issu...
