Jurors found the companies were negligent and the design of their apps caused harm to children. ...

Mark Zuckerberg is on the stand today in a very high-profile social media trial in downtown Los Angeles. Julia Borston is live outside the courthouse for us today uh for today's tech check, no less. Julia, what can you tell us.Well, Kelly, Mark Zuckerberg has been testifying for the past hour in this trial on the addictive nature of Meta's product design and potential damage done to kids and teens. Now, one key line of questioning that he's been facing is whether Meta actually prevents kids under age 13 fro ...

Core Insights - Meta Platforms has shifted its focus from the metaverse to artificial intelligence (AI), with significant investments planned for the future [1] Group 1: Investment and Expenditure - Meta plans to increase its capital expenditures significantly, with a projected spending of $135 billion on new data centers, marking an 87% increase from the previous year [2] - The investment will support the AI Superintelligence team, which includes a $14 billion investment in Scale AI for a 49% stake [3] Group 2: Profitability and Financial Impact - The increase in capital expenditures is leading to higher depreciation expenses, which rose by 20% in 2025 and are expected to increase further in 2026 [4] - Meta's operating margin decreased from 48% in Q4 2024 to 41% in 2025, although management anticipates overall operating income growth in 2025 despite margin pressures [5] Group 3: Growth Potential in AI - Meta has effectively utilized AI advancements to drive revenue growth, achieving a 24% revenue increase in Q4 due to strong user engagement and rising ad prices [6] - The integration of large language models (LLMs) with the machine learning recommendation system is expected to enhance user engagement by providing more tailored content feeds [7]

Core Insights - Meta projected that 10% of its overall annual revenue, amounting to $16 billion, would be derived from fraudulent advertisements on its platforms [1] - For three consecutive years, Meta has not effectively protected users from ads promoting illegal activities, including gambling and investment schemes [1] - Meta's system for detecting fraudulent advertising campaigns only deactivates accounts if there is a 95% certainty of fraud, which allows some questionable advertisers to continue operating [4] Company Response - Meta spokesperson Andy Stone stated that the documents used by Reuters provide a selective view of the company's approach to fraud [5] - Over the past 18 months, Meta has reportedly reduced user reports of scam ads by 58% and removed over 134 million scam ads from its platforms [5]