Facebook co-founder and Meta CEO Mark Zuckerberg sits in his seat inside a bipartisan Artificial Intelligence Insight Forum for all U.S. senators hosted by Senate Majority Leader Chuck Schumer at the U.S. Capitol in Washington, D.C., on Sept. 13, 2023.A landmark case against social media giants Meta, Alphabet's YouTube and TikTok is set to begin Tuesday in Los Angeles Superior Court. It's the first of several high-profile legal cases kicking off in 2026 that center on allegations that the companies misled t ...

Core Viewpoint - Meta Platforms is expected to report strong fourth-quarter 2025 results driven by advertising revenue growth, despite challenges from rising expenses and losses in its Reality Labs division [2][5][10]. Financial Performance Expectations - Meta anticipates total revenues between $56 billion and $59 billion for Q4 2025, with a Zacks Consensus Estimate of $58.40 billion, reflecting a 20.7% increase year-over-year [2][3]. - The consensus estimate for earnings per share is $8.15, indicating a 1.6% growth from the previous year [3]. Advertising Revenue Growth - The advertising revenue for Q4 2025 is projected at $56.85 billion, suggesting a 21.5% year-over-year growth, driven by increased advertiser spending and improved AI capabilities [5]. - Meta's platforms, including Facebook, WhatsApp, Instagram, Messenger, and Threads, reach over three billion users daily, contributing to its significant share of the digital ad market [6]. AI and User Engagement - Meta is leveraging AI to enhance user experience and engagement, with over one billion users currently utilizing Meta AI [7][8]. - The company’s AI-powered ad tools have an annual run rate exceeding $60 billion, indicating strong demand and effectiveness in ad targeting [5]. Financial Challenges - Rising expenses related to AI development and Reality Labs are expected to pressure profit margins, with the operating income for the Family of Apps estimated at $29.78 billion, a 5.1% year-over-year increase [9]. - Reality Labs is projected to incur a loss of $6.31 billion in Q4 2025, wider than the previous year's loss of $4.97 billion [10]. Stock Performance and Valuation - Meta shares have decreased by 0.2% over the past year, underperforming the Zacks Computer & Technology sector, which has appreciated by 28.4% [11]. - The current valuation of Meta is considered stretched, with a forward price/sales ratio of 6.98X, higher than the industry average of 4.58X [12]. Capital Expenditure and Future Outlook - Meta's capital spending for 2025 is expected to be between $70 billion and $72 billion, reflecting increased investment in AI and infrastructure [14]. - Despite the potential long-term benefits of these investments, the company faces challenges from a competitive ad market and regulatory issues [15][16].

Core Viewpoint - The French National Assembly has passed a bill prohibiting social media use for minors under 15, driven by growing concerns over cyberbullying and mental health risks among youth [2] Group 1: Legislative Action - The bill was approved with a vote of 116 in favor and 23 against, reflecting increasing public anxiety about the impact of social media on minors [2] - The bill will next be reviewed by the Senate and requires a final vote in the National Assembly [2] Group 2: Government Stance - President Macron highlighted social media as a contributing factor to youth violence and called for France to follow Australia's lead in banning minors from using social media [2] Group 3: International Context - Australia implemented the world's first ban on social media for minors under 16 in December, prohibiting access to platforms like Facebook, Snapchat, TikTok, and YouTube [2]

Core Insights - Meta is planning to test new subscription models that will provide users with access to exclusive features across its apps, enhancing productivity and creativity while expanding AI capabilities [1][2] Subscription Features - The upcoming subscriptions will offer a premium experience on Instagram, Facebook, and WhatsApp, allowing users to access special features and gain more control over sharing and connections, while keeping core experiences free [2] - Each app subscription will feature distinct exclusive offerings, indicating a flexible strategy in testing various subscription features and bundles [2] AI Integration - Meta intends to scale Manus, an AI agent acquired for approximately $2 billion, as part of its subscription plans, integrating it into Meta products while also offering standalone subscriptions to businesses [3][4] - The company is working on adding a shortcut to Manus AI on Instagram, showcasing its commitment to enhancing user experience through AI [4] Vibes Video Generation - Meta plans to introduce subscriptions for AI features, including Vibes, an AI-powered short-form video creation tool, transitioning from a free model to a freemium access model with subscription options for additional video creation opportunities [5] Specific Features for Instagram - The new Instagram subscription will allow users to create unlimited audience lists, view followers who do not follow back, and check Stories without the poster knowing [6] Distinction from Meta Verified - The new subscriptions will be separate from Meta Verified, which is aimed at content creators and businesses, while the upcoming offerings will target a broader audience [7][9] Revenue Generation and Market Context - The introduction of additional subscriptions is expected to enhance Meta's revenue, although concerns about subscription fatigue among users may pose challenges [10] - The success of Snap's Snapchat+ subscription, which has over 16 million subscribers, indicates a viable market for social media subscriptions, suggesting that Meta will need to offer compelling products to attract users [11]

YouTubers sue Snap for alleged copyright infringement in training its AI models https://t.co/DDotpt40Ba ...

Social media stocks are slightly higher today after the deal to keep Tik Tok in the US was finalized yesterday. Let's bring in Julia Borson to tell us how it's going to work. What are the details.Hi, Julia. >> Hi, Kelly. That's right.The Tik Tok app on your phone has new owners in the US and its algorithm is being retrained on US data. Now, the new company's majority owners are Oracle, Silverlake, and Abu Dhabi based MGX with 19% still owned by Bite Dance, and the and the app's 200 million US-based users wi ...

Core Insights - The deal to keep TikTok operational in the US has been finalized, with new ownership primarily by Oracle, Silverlake, and Abu Dhabi-based MGX, while ByteDance retains a 19% stake [2] Group 1: Ownership and Operations - TikTok's algorithm is being retrained on US data under the new ownership structure, which may impact user experience and advertising returns [2][3] - The app's 200 million US users will not need to download a new version, indicating continuity in user access [2] Group 2: Competitive Landscape - Uncertainty regarding TikTok's future has previously benefited competitors like Meta, Snap, YouTube, and Pinterest, as brands may delay advertising investments until TikTok's ROI becomes clearer [3] - A significant risk for TikTok is the rising popularity of Instagram's Reels, with average user time on TikTok decreasing from 1 hour to 52 minutes, while Instagram's user time has increased from 33 minutes to 36 minutes [4] Group 3: E-commerce Potential - TikTok is expected to aggressively expand its e-commerce segment, potentially challenging established players like Shein and Sephora [5] - E-marketer forecasts that TikTok Shop will achieve over $20 billion in US sales this year, with projections of growth to $37 billion by 2029 [5]

Industry Overview - The S&P North American Technology Software Index has underperformed the S&P 500 by 19 percentage points over the past year, marking the worst relative performance for the software industry since the bear market of 2022 [1] - Concerns about artificial intelligence (AI) disrupting traditional business models have contributed to this underperformance, with investors worried about reduced demand for many software products [2] AppLovin - AppLovin is projected to have a 45% upside based on the median target price of $774.50 per share, compared to its current price of $533 [8] - The company specializes in ad tech software that enhances consumer engagement and monetizes web content through targeted campaigns, having expanded from mobile gaming to e-commerce advertising [5] - AppLovin differentiates itself by earning revenue based on ad performance rather than a percentage of ad spend, and its AI-powered recommendation engine, Axon, significantly outperforms competitors [6] - Axon reportedly drives a 45% higher return on ad spending compared to Meta Platforms and 115% higher than platforms like TikTok and YouTube [7] - Wall Street estimates that AppLovin's adjusted earnings will grow at an annual rate of 58% through 2027, making its current valuation of 66 times earnings appear reasonable [8] Atlassian - Atlassian has an implied upside of 84% based on a median target price of $225 per share, compared to its current price of $122 [13] - The company develops work management and collaboration software for both technical and non-technical teams, recognized as a technology leader in various categories by Gartner [9] - Atlassian invests heavily in R&D and is unique in connecting technical, non-technical, and IT service teams on a single platform, which enhances collaboration and upselling opportunities [10] - The introduction of generative AI features called Rovo aims to improve productivity and efficiency across business teams, positioning Atlassian as a potential winner in the AI boom [11] - Wall Street anticipates Atlassian's adjusted earnings to increase at 22% annually through the fiscal year ending in June 2027, with a current valuation of 31 times earnings appearing reasonable [12]

PARIS — As luxury brands double down on their history to woo back consumers, Kering chief executive officer Luca de Meo wants to nudge them into the future. Speaking at the second edition of the Kering Innovation Day event in Paris, de Meo urged employees of brands including Gucci, Saint Laurent and Balenciaga to use technology to improve the design, supply chain and customer experience in luxury fashion. More from WWD “My ambition is to complement that natural tendency of the industry to look back with ...

Core Viewpoint - The Australian government has implemented a social media ban for minors under 16, resulting in over 4.7 million accounts being disabled, deleted, or restricted since December 10. The public response is mixed, with some supporting the measures while others find ways to circumvent the ban [1]. Group 1 - The Australian government has reported that more than 4.7 million accounts related to minors have been disabled, deleted, or restricted since the implementation of the social media ban [1]. - The ban applies to 10 social media platforms, including Facebook, Instagram, TikTok, and YouTube, with a maximum fine of AUD 49.5 million for non-compliance by social media companies [1]. - The Australian Prime Minister and Communications Minister have acknowledged the initial positive impact of the ban, emphasizing the importance of taking action to drive change [1]. Group 2 - The eSafety regulator will continue to monitor compliance across social media platforms to ensure the enforcement of the new regulations [2].