One of the big stories that come in tandem with these results is a tie-up with Elon Musk 's other AI venture: Xai. The company will invest $2 billion in the firm and cooperate on some "potential AI collaborations."As has become increasingly common, the company emphasized future product development, namely on its Optimus robot, RoboTaxi product, and utility-grade battery system. The firm's diversification away from being a pure-play electric vehicle producer has come amid global pressures on the auto market. ...

Social media is on trial with jury selection beginning today at the LA Superior Court here behind me in this high-profile case against Meta and YouTube. And this case has massive implications for the industry. This is the first case in a wave of trials [music] on the addictive negative impact of social media on kids and teens, which is drawing comparisons to the attack on big tobacco in the 1990s. The plaintiffs in this first trial are a 19-year-old woman and her mother. They claim social companies knowingl ...

Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer put under the microscope. Cramer said that the company “needs a new catalyst,” as he remarked: Why don’t we start with Meta Platforms, which saw its stock plunge 11% last time it reported in late October, and it’s now down almost 16% from its August highs. At these levels, Meta is selling for less than 23 times this year’s earnings estimates, making it look pretty darn cheap. But if the stock’s going to turn around, it needs a new catalyst ...

Social media is on trial, with jury selection beginning today at the LA Superior Court here behind me, in this high-profile case against Meta and YouTube. And this case has massive implications for the industry. This is the first case in a wave of trials on the addictive, negative impact of social media on kids and teens, which is drawing comparisons to the attack on Big Tobacco in the 1990s.The plaintiffs in this first trial are a 19-year-old woman and her mother. They claim social companies knowingly desi ...

Social media is on trial, with jury selection beginning today at the LA Superior Court here behind me, in this high-profile case against Meta and YouTube. And this case has massive implications for the industry. This is the first case in a wave of trials on the addictive, negative impact of social media on kids and teens, which is drawing comparisons to the attack on Big Tobacco in the 1990s.The plaintiffs in this first trial are a 19-year-old woman and her mother. They claim social companies knowingly desi ...

Key Takeaways You're likely one of the billions who use social media. But would you pay for the privilege? More changes to do so may soon come your way. Meta Platforms (META), parent company of Instagram, Facebook and WhatsApp, is looking to test new subscription plans for premium experiences on the trio of apps, according to a TechCrunch report later confirmed to Investopedia by a Meta spokesperson. The report said the plans would give users access to features that could include AI capabilities, as well as ...

Core Insights - Meta Platforms Inc. is set to report its fourth-quarter earnings, with a focus on the impact of its revamped artificial intelligence strategy for 2026 [1] - The company invested $14.3 billion in Scale AI to enhance its AI capabilities, particularly under the leadership of founder Alexandr Wang [1][2] AI Strategy and Investments - Meta's AI unit, TBD, was established following a lukewarm reception of its Llama 4 model, and it is currently developing a new model code-named Avocado, expected to launch in the first half of the year [2] - The company is also investing heavily in data center infrastructure, committing up to $6 billion to Corning for fiber-optic cables through 2030 [3] - CEO Mark Zuckerberg emphasized the necessity of these investments in AI, despite concerns from investors regarding costs [3][4] Financial Projections - Meta's capital expenditures related to data centers are projected at $21.97 billion for the quarter, with expected online advertising sales of $56.98 billion [4] - Analysts predict that the number of daily active users will reach 3.58 billion in the fourth quarter [5] Reality Labs Unit - The Reality Labs unit, which focuses on virtual and augmented reality, is expected to report an operating loss of $5.67 billion on sales of $940.8 million for the fourth quarter [6][7] - This unit has accumulated over $70 billion in total operating losses since late 2020, raising concerns about its future viability [7] Earnings Estimates - Analysts estimate earnings per share at $8.21 and revenue at $58.35 billion for the upcoming report [8]

Core Insights - Snap (SNAP) is set to report its fourth-quarter 2025 results on February 4, with expected revenues of $1.7 billion, reflecting a 9.12% increase year-over-year, while earnings per share are estimated at 15 cents, indicating a 6.25% decline from the previous year [1][7]. Group 1: Financial Expectations - The Zacks Consensus Estimate for Snap's fourth-quarter revenues is currently pegged at $1.7 billion, indicating a 9.12% increase from the year-ago quarter's reported figure [1]. - The consensus mark for earnings is pegged at 15 cents per share, which has remained unchanged over the past 30 days, implying a 6.25% decline from the year-ago quarter's earnings of 16 cents [1]. Group 2: Recent Performance and Trends - Snap has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing it once, with an average negative surprise of 46.43% [2]. - The company is expected to have entered the fourth quarter of 2025 with improving advertising momentum, particularly in the Small and Medium-sized Business (SMB) segment, which is anticipated to show robust growth rates [3]. - The advertising platform's machine learning investments are expected to have driven improved attribution accuracy, particularly for purchase-related advertising, which is projected to grow substantially faster than overall ad revenue [3]. Group 3: Content Engagement and Innovations - Content engagement trends are expected to have strengthened due to improvements in the company's recommendation model, with significant year-over-year increases in Spotlight views [4]. - The creator ecosystem is anticipated to have expanded rapidly, with Snap Star activity growing nearly 180% year-over-year in North America [4]. - New product launches, such as Animate It and Quick Cut, along with expansion to Amazon Fire Tablets, are expected to enhance user engagement and accessibility [4]. Group 4: Challenges and Headwinds - Fourth-quarter results are expected to reflect significant headwinds from regulatory pressures, including Australia's social media minimum age law, which is likely to have caused immediate user attrition [5]. - The rollout of platform-level age verification is expected to pressure daily active user metrics across multiple geographies [5]. - The introduction of Memory Storage Plans, which end unlimited free storage for users exceeding 5GB, is likely to have generated resistance among engaged users [5].

Company Actions - Amazon is cutting approximately 16,000 jobs globally, marking one of the largest reductions in its history [1] - The layoffs are part of an effort to strengthen the organization by reducing layers, increasing ownership, and removing bureaucracy, according to Beth Galetti, Amazon's senior vice president [3] - Amazon emphasizes that these layoffs do not indicate further workforce reductions are planned, although teams will continue to reassess their organizational structure [3] Industry Trends - Amazon's layoffs reflect a broader trend across various industries, including financial services and technology, as companies recalibrate headcount while investing in automation and artificial intelligence [2][4] - Other companies, such as Citigroup and Nike, are also implementing job cuts due to similar technological advancements, with Citigroup planning additional layoffs and Nike cutting 775 distribution center jobs [4][5] - A significant increase in layoffs has been observed, with a 175% year-over-year rise in U.S. layoffs in October attributed to AI adoption and cost-cutting measures [6]

Core Viewpoint - Meta is introducing a subscription model for Facebook and Instagram, allowing users to pay £3.99 per month to remove personalized ads, or continue using the platforms for free with ads [1][6][13] Pricing Structure - The subscription fee for the app version is £3.99 per month, while the web version costs £2.99 per month. Additional accounts incur a charge of £2 per month for web and £3 for app [6] - The higher app fee is attributed to fees imposed by Apple and Google [6] Target Audience - Notifications regarding the subscription are being sent to UK users over the age of 18, prompting them to consider the ad-free option upon logging into their accounts [9] User Options - Users who opt not to subscribe will continue to see personalized ads but can adjust their ad preferences in the settings [12] - Meta emphasizes that it does not sell personal data to advertisers [12] Reason for Subscription Introduction - The subscription model follows guidance from the UK's Information Commissioner's Office regarding ad-free options, aiming to provide users with a choice about data usage for personalized advertising [13] - This model, referred to as "consent or pay," allows digital platforms to generate revenue from users who choose not to be tracked [14]