Meta stock price soars on strong Q4 ad sales. Spending on AI is way up, too

Core Insights - Meta's fourth-quarter results exceeded Wall Street expectations, driven by strong advertising revenue, leading to a significant increase in stock price during after-hours trading [1] Financial Performance - Meta reported earnings of $22.77 billion, or $8.88 per share, for the October-December quarter, marking a 9% increase from $20.84 billion, or $8.02 per share, in the same period the previous year [1] - Revenue grew 24% to $59.89 billion from $48.39 billion year-over-year [1] - Analysts had anticipated earnings of $8.21 per share on revenue of $58.5 billion, indicating that Meta's performance was notably stronger than expected [1] Market Position - Meta's strong performance reinforces its status as one of the world's leading media companies, according to industry analysts [1] Future Outlook - For the current quarter, Meta forecasts revenue between $53.5 billion and $56.5 billion, surpassing analysts' expectations of $51.4 billion [1] - For 2026, Meta projects expenses to range from $162 billion to $169 billion, primarily due to infrastructure costs and high compensation for AI experts [1] Investment in AI - The company is significantly increasing its spending on artificial intelligence, which is expected to support its long-term growth despite rising expenses [1] - Meta's expenses grew 40% to $35.15 billion, with a warning of even higher costs in the upcoming year [1]