Price targets are going up today. There's a lot of optimism around this name, Julia. >> Yeah, Meta shares rising this morning, up about 1% now after the company showcased its new hardware.And the star product were these Meta Rayband displays that I got to demo last night with an inlens display and a neural wristband, which allows users to pull up messages, take and watch videos, get directions, and ask questions of Meta AI, as well as get the answers or recipes. All of that within the glasses. You see it wi ...

Price targets are going up today. There's a lot of optimism around this name, Julia. Yeah, Meta shares rising this morning, up about 1% now after the company showcased its new hardware.And the star product were these Meta Rayband displays that I got to demo last night with an inlens display and a neural wristband, which allows users to pull up messages, take and watch videos, get directions, and ask questions of Meta AI, as well as get the answers or recipes. All of that within the glasses. You see it withi ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - The future of computing devices is believed to be smart glasses, as stated by Meta's Chief Product Officer Chris Cox [1] - The newly revealed Meta Ray-Ban Display AI glasses are priced at $799 and feature a small in-lens display controlled by hand movements via a neural wristband [1] - Users can record videos and send messages using voice commands or handwriting gestures on their knee [2]

Sometimes, the demo just doesn't work. At Meta Connect last night, Mark Zuckerberg's showcase for how AI can help a chef put together a BBQ sauce came to an awkward end. https://t.co/OPmL64OT1v ...

Core Viewpoint - Major tech companies are in an unprecedented AI infrastructure arms race, with capital expenditure intensity approaching peak levels seen during the internet bubble, leading to potential underestimation of future depreciation costs and risks of a price war by 2027 [2][3][11]. Group 1: Capital Expenditure Trends - Morgan Stanley predicts that capital expenditure as a percentage of revenue for major players like Amazon, Google, Meta, Microsoft, and Oracle will reach 26% by 2027, nearing the 32% peak during the internet bubble [3][5]. - The actual scale of investment is underestimated due to the increasing use of off-balance-sheet tools like financing leases, which are not fully captured in traditional capital expenditure data [5][6]. - Microsoft and Oracle's capital intensity is expected to rise significantly when financing leases are included, with Microsoft's ratio projected to increase from 28% to 38% and Oracle's from 41% to 58% by fiscal 2026 [6]. Group 2: Impact of Construction in Progress - A significant amount of capital is currently tied up in "Construction in Progress" (CIP), which does not incur depreciation until the assets are operational, delaying the impact on profit statements [8]. - Google, Amazon, Meta, and Oracle have seen substantial increases in their CIP balances, with Amazon's growing by approximately 60% ($17 billion) and Google's by about 40% ($15 billion) over the past year [8]. Group 3: Future Depreciation Costs - Analysts at Bank of America highlight that Wall Street is underestimating future depreciation expenses, with a projected discrepancy of nearly $16.4 billion for Google, Amazon, and Meta by 2027 [11][15]. - The rapid technological advancements in AI hardware, such as GPUs, may lead to shorter asset lifespans, with Amazon already reducing the expected lifespan of some servers from six years to five [13]. Group 4: Potential Price War - If supply continues to outpace demand, a price war may emerge as early as 2027, with major players potentially adopting aggressive pricing strategies to maintain utilization rates, which could compress profit margins [16].

Core Viewpoint - Meta has launched several new smart glasses, including the first Ray-Ban smart glasses with a built-in display, aimed at enhancing user interaction and experience in the augmented reality space [3][4][10]. Product Launches - Meta introduced the Ray-Ban Display smart glasses priced at $799, featuring a single digital display for notifications and other tasks, with a field of view of 20 degrees, a resolution of 600x600 pixels, and a peak brightness of 5000 nits [4][10]. - The Oakley Meta Vanguard smart glasses, targeting athletes, are priced at $499 and offer real-time training data integration with platforms like Garmin and Strava, along with a battery life of up to 9 hours [12]. - The third generation Ray-Ban Meta smart glasses have improved battery life, nearly doubling that of the previous version, and are priced at $379 [13]. Technological Features - The Ray-Ban Display glasses come with a wristband for gesture control, allowing users to navigate music and adjust volume through finger movements detected by the band [7][10]. - The smart glasses support various functionalities, including displaying messages, video calls, navigation routes, and music control [5][10]. - The Oakley Vanguard features a camera module capable of 3K video recording and supports slow-motion and time-lapse photography [12]. AI and Interaction Challenges - During the AI demonstration, Meta faced technical difficulties, highlighting challenges in real-time AI interaction technology [16][18]. - Despite being a leader in smart glasses development, Meta is reportedly lagging behind competitors like OpenAI and Alphabet in advanced AI models, prompting a talent acquisition push and significant investment in AI technology [18]. Industry Insights - The Connect conference featured James Cameron discussing the Meta Quest's advancements in 3D content, emphasizing the platform's superior brightness and field of view compared to traditional cinema [19].

Core Insights - Meta has engaged in discussions with news organizations such as Axel Springer, Fox Corp, and News Corp regarding content licensing for its AI tools, marking a significant shift in its strategy towards news content [1][4][10] - The company currently offers several AI tools, including the Meta AI Assistant, which is integrated across its platforms like Facebook, Instagram, and WhatsApp [1][2] Group 1: Licensing Discussions - The talks focus on licensing news and other content for use in Meta's AI bots, indicating a potential return to content partnerships [2][4] - Some discussions are still in early stages and may not lead to finalized deals, reflecting a cautious approach from Meta [4] Group 2: Historical Context - Previously, Meta had signed deals worth tens of millions of dollars with major publishers like the New York Times and Washington Post for its News Tab, but it announced in 2022 that it would phase out these payments [5][10] - The rationale for this shift was that most users do not visit Facebook primarily for news, leading to a reduced investment in that area [5] Group 3: Impact on Publishers - Following the cessation of previous deals, many publishers reported a decline in traffic from Facebook, although some have recently observed an increase in traffic [6] - The rise of AI has disrupted the publishing industry, with tech firms scraping content from websites to train their models, prompting publishers to seek ways to protect their content [6][8] Group 4: Competitive Landscape - Other companies, such as OpenAI and Amazon, have been quicker to establish licensing agreements with media organizations, highlighting a competitive environment in content licensing [8][9]

Meta Platforms, Inc. (NASDAQ:META) is among the 15 Stocks ChatGPT Predicts Could Make You Wealthy in 5 Years. However, the company is in the hot seat again over whistleblower allegations that the tech giant stifled kids’ safety. Meta Platforms, Inc. (META) Put VR Profits Over Kids' Safety, Whistleblowers Allege Halfpoint/Shutterstock.com On September 9, two former researchers told a Senate panel that the Facebook parent prioritized profits from its virtual-reality platform over safety. Cayce Savage, a f ...

Market Overview - The Federal Reserve cut interest rates by 25 basis points, signaling a cautious approach to future cuts, with no preset course for additional reductions [1][4][6] - Following the Fed's decision, the market opened positively, with the NASDAQ up approximately 0.8% and the S&P 500 up around 0.4% [1][2] - The US dollar index showed signs of recovery, bouncing off three-and-a-half-year lows, while gold futures slightly declined from record highs [1][2] Nvidia and Intel Deal - Nvidia announced a $5 billion investment in Intel, acquiring a 4% stake, which is expected to enhance Intel's capabilities in AI data centers and chip production [1][2][3] - Intel's shares surged by 25% following the announcement, while AMD's shares fell by around 5%, indicating market concerns about AMD's competitive position [1][2] - This partnership is seen as a significant boost for Intel, which has faced challenges in the AI race, and it positions Nvidia to strengthen its market dominance [2][3] Labor Market Concerns - Fed Chair Jerome Powell expressed concerns about the labor market, indicating potential weakness in upcoming non-farm payroll reports, with expectations of payroll growth under 100,000 [2][4] - Economists suggest that the labor market dynamics are changing, with immigration crackdowns contributing to supply and demand issues [2][4] - Powell's comments reflect a balancing act between achieving stable prices and full employment, with inflation remaining above the Fed's target [4][5][6] Economic Outlook - Analysts predict that sectors sensitive to interest rates, such as financials and housing, may continue to outperform as the market adjusts to the Fed's rate cuts [2][3] - The ongoing investments in chip manufacturing in the US are expected to positively impact GDP, with significant capital expenditures already being observed [3][20] - The overall economic environment remains cautious, with potential risks of a deeper downturn as the Fed navigates its dual mandate [4][12][14] Meta's Competitive Position - Meta has introduced new AI-enhanced hardware, including eyeglasses, aiming to challenge Apple's dominance in the tech space [1][3] - Despite Meta's innovations, analysts believe Apple still holds a significant advantage with its extensive installed base and ecosystem [3][20]