Meta quarterly profit jumps but it sees volatility in ad market

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Meta on Wednesday reported that its quarterly profit more than doubled from last year's figure to $11.6 billion as ad revenue climbed.

This photograph taken on October 28, 2021 shows the META logo on a laptop screen in Moscow as Facebook chief Mark Zuckerberg announced the parent company's name is being changed to"Meta" to represent a future beyond just its troubled social network. The new handle comes as the social media giant tries to fend off one its worst crises yet and pivot to its ambitions for the"metaverse" virtual reality version of the internet that the tech giant sees as the future.

Meta's vow of austerity on spending brought an unprecedented round of cost-cutting that saw the company lay off tens of thousands of workers since last November. "We have seen broader demand softness follow other regional conflicts in the past, such as in the Ukraine war, so this is something that we're continuing to monitor."Analyst Enderle maintained that Meta is at risk from lawsuits poised to damage its image and its wallet.

In total more than 40 states are suing Meta, though some opted to file in local courts rather than join in the federal case. Meanwhile, the European Union is seeking details on measures Meta has taken to stop the spread of "illegal content and disinformation" in light of the conflict between Israel and Hamas.The tech giant is putting artificial intelligence into digital assistants and smart glasses as it seeks to gain lost ground in the AI race.

Meta has taken a more cautious approach than its rivals Microsoft, OpenAI and Google to push out AI products, prioritizing small steps and making its in-house models available to developers and researchers.

 

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Meta quarterly profit jumps but it sees volatility in ad marketMeta reported that its quarterly profit more than doubled from last year's figure as it looks ahead at a volatile ad market.
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