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A visitor wears a virtual reality headset Meta Quest as he takes part in an immersive experience stand during the Viva Technology show at Parc des Expositions Porte de Versailles on May 24, 2024 in Paris, France. As part of the company's second-quarter earnings report on Wednesday, Meta's Reality Labs unit, which houses augmented and virtual reality technologies, recorded an operating loss of $4.48 billion. In September, Meta debuted the Quest 3 VR headset, which has a starting price of $499. Zuckerberg has pointed to advances in artificial intelligence and related large language models as improving the capabilities of smart glasses. Meta's second generation of smart glasses went on sale in October with a starting price of $299.
Persons: Porte de Versailles, StreetAccount, Mark, Meta, Ray, Ban, Zuckerberg, Francesco Milleri Organizations: Viva Technology, Parc, Labs, Reality Labs, Apple, CNBC, Meta Locations: Paris, France, China
Meta reported revenue growth of 22% from a year earlier to $39.07 billion, with 98% of its sales coming from advertising, primarily on Facebook and Instagram. Its growth rate was double that of Google's ad business, which saw sales increase 11% to $64.6 billion, Alphabet said in its earnings report last week. Meanwhile, Pinterest and Spotify , which are both significantly smaller than Meta, reported revenue growth of 21% and 20%, respectively, in their latest reports. As in previous quarters, Li said Meta's advertising business benefited from online commerce, gaming and the media and entertainment sectors, and that ad growth continued to be strongest in the Asia-Pacific region. She said the company's "improved ad performance" helped lift overall ad prices despite slowing growth in that region.
Persons: Mark Zuckerberg, Emily Chang, Zuckerberg, Susan Li, Li Organizations: Meta, Inc, Facebook, Spotify, Apple Locations: Menlo Park , California, Asia, Pacific
Westend61 | Getty ImagesAn automated financial advisor called PortfolioPilot has quickly gained $20 billion in assets in a possible preview of how disruptive artificial intelligence could be for the wealth management industry. The world's largest wealth management firms have rushed to implement generative AI after the arrival of OpenAI's ChatGPT, rolling out services that augment human financial advisors with meeting assistants and chatbots. "People are fed up with cookie-cutter portfolios," Harmsen told CNBC. Global Predictions targets people with between $100,000 and $5 million in assets — in other words, people with enough money to begin worrying about diversification and portfolio management, Harmsen said. After realizing it could have a broader use, Harmsen began building a team for Global Predictions, including three former employees of Bridgewater Associates, the world's largest hedge fund.
Persons: PortfolioPilot, Alexander Harmsen, OpenAI's, Morgan Stanley, Harmsen, we'll Organizations: Global, Morado Ventures, NEA Angel Fund, CNBC, Bank of America, Bridgewater Associates Locations: San Francisco
Qualcomm beats estimates and phone chip sales are up 12%
  + stars: | 2024-07-31 | by ( Kif Leswing | ) www.cnbc.com   time to read: +3 min
Qualcomm reported fiscal third-quarter earnings on Wednesday that beat Wall Street expectations, particularly for sales, and provided strong guidance for the current quarter. Qualcomm said it expected between $9.5 billion and $10.3 billion in sales in the current quarter, compared to Wall Street expectations of $9.71 billion. Handset sales rose 12% on a year-over-year basis to $5.9 billion in revenue, in line with analyst estimates from StreetAccount, which suggests that a deep slump in smartphone sales over the past two years is abating. Those three hardware lines are reported together as QCT, the company's chip business, which in total reported $8.1 billion in sales, up 12% year-over-year. Qualcomm also collects licensing fees from companies that integrate 5G or other cellular technologies into their products, reported as QTL sales.
Persons: Cristiano Amon, StreetAccount Organizations: Qualcomm, Samsung, Microsoft Locations: Las Vegas , Nevada, U.S, StreetAccount
Along with its S24 series of smartphones, foldable devices, smartwatches and now the Galaxy Ring, Samsung is hoping to lock users into its world of products held together with its suite of artificial intelligence features, known as Galaxy AI. Arjun KharpalOne of the things Samsung said was look, the ring is one product, but we've got the watch, we've got the smartphone. I think that's the right approach for Samsung, I don't think they have unrealistic expectations for volumes on this. And you'd feel like if there was some sort of Apple ring, it would do pretty good volumes. Do you think Samsung is seriously looking at ways to monetize this via subscriptions or other kinds of service business model?
Persons: aren't, Tom Chitty, Ben Wood, Meta's Ray, Arjun, Tom Chitty I've, I've, we've, Arjun Kharpal, let's, It's, That's, it's, you've, they've, there's, they're, someone's, I'm, that's, you'll, Ben Wood It's, smartwatch, Arjun Kharpal Apple's, Ben Wood They've, Tim Cook, He's, who'd, Tom Chitty Diamond, somebody's, who've, wasn't, Samsung hasn't, we'll, Ben, they'll, Will, wearables, Kharpal, Arjun Kharpal Tom, Tom, Tom Chitty We'll Organizations: Samsung, South, Galaxy, CNBC, CCS Insight, Mobile, Apple, Garmin, Apple Watch, U.S, Vision, Samsung Electronics, Google, MWC Locations: South Korean, Paris, France, beyondthevalley@cnbc.com, There's, Finland, London
Meta set to report second-quarter earnings after the bell
  + stars: | 2024-07-31 | by ( Jonathan Vanian | In | ) www.cnbc.com   time to read: +4 min
Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023. Meta is slated to report second-quarter earnings on Wednesday after the close of regular trading. Meta's ad revenue is projected to show an increase of 19% to $37.6 billion, according to StreetAccount. Heading into Meta's report on Wednesday, the digital ad market has shown some signs of weakness. Alphabet reported lower-than-expected ad revenue out of YouTube last week, and on Tuesday, Pinterest issued disappointing third-quarter guidance, leading to a 15% plunge in the stock after hours.
Persons: Mark Zuckerberg, LSEG, Meta, Zuckerberg, Emily Chang, Sundar Pichai, Pichai, Pinterest, Julia Brau Donnelly Organizations: Meta, Google, YouTube, Labs, Revenue, Quest VR, Microsoft Locations: Menlo Park , California
While there are still concerns about the company's aggressive AI spending, we believe these investments will pay off in the long run. Both trends were cited as the main drivers behind Meta's revenue outperformance in the quarter. Zuckerberg added that AI is opening the door to new experiences and opportunities, especially with Meta AI, which is powered by the company's large language model that is often referred to as Llama. Zuckerberg said he believes Meta AI will be the most used AI assistant in the world by year end. Management now sees capex in the range of $37 billion to $40 billion, up from its prior range of $35 billion to $40 billion.
Persons: China's ByteDance, — Zuckerberg, Zuckerberg, we'll, Ray, Jim Cramer's, Jim Cramer, Jim, Mark Zuckerberg Organizations: Revenue, LSEG, China's, Meta, Investment, Facebook, Realty Labs, VR, Management, CNBC, Press, AFP, Getty Locations: United States, U.S, Tokyo
The other involved Meta AI responses about the shooting, which in some instances inaccurately claimed the incident hadn't occurred at all. In the blog post for Meta, Kaplan denied the decisions had been made with bias. Kaplan said it is a "known issue" that chatbots like Meta AI can be unreliable when asked about breaking news or real-time events. Meta has updated its AI response on the topic, but Kaplan acknowledged, "We should have done this sooner." "These types of responses are referred to as hallucinations, which is an industry-wide issue we see across all generative AI systems, and is an ongoing challenge for how AI handles real-time events going forward.
Persons: , Donald Trump, Trump, Joel Kaplan, Kaplan, Elon Musk, Mark Zuckerberg, he's Organizations: Service, Business, Trump, Meta, Big Tech
Meta's AI spend comes into focus ahead of earnings
  + stars: | 2024-07-31 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMeta's AI spend comes into focus ahead of earningsCNBC's Julia Boorstin reports on what to expect from Meta's quarterly earnings results.
Persons: Julia Boorstin
More important to Wall Street is the company's capital expenditures — or spending — as investors are demanding to see clear signs that hefty investments in AI are beginning to pay off . META 1M mountain Meta shares this month The intensified attention toward AI spending comes on the heels of Alphabet's quarterly print and during a "make-or-break" week with earnings from four tech behemoths. While Alphabet topped Wall Street estimates, its rising expenses spurred a sell-off across the sector. But Beck also sees Meta shares going higher as he raised his price target to $600. An uptick in advertising Wall Street is also keeping an eye on advertising figures this quarter, with Nowak viewing Meta as best situated to weather any uncertainty.
Persons: Wolfe Research's, Khajuria, Morgan Stanley, Brian Nowak, capex, Raymond James, Josh Beck, Beck, Wells, Ken Gawrelski, Nowak, Mark Shmulik, Deutsche Bank's Benjamin Black, bode, America's Justin Post Organizations: Meta, StreetAccount, Deutsche, America's, ~$ Locations: Paris
Meta is on a mission to dominate messaging apps in the US, and AI is helping it gain steam. WhatsApp hit 100 million monthly active US users last week; it has more than 2 billion globally. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . After buying WhatsApp in 2014 for $19 billion in cash and stock, Meta last week reached a milestone, crossing 100 million monthly active users of the messaging app in the US. While WhatsApp is widely used worldwide — it notched 2 billion users globally in 2020 — it hasn't gained as strong a foothold in the US, trailing behind other messaging services, most notably Apple's iMessage.
Persons: , WhatsApp, hasn't Organizations: Service, Meta
In his Sunday column , Jim Cramer wrote that these earnings reports will test that rotation narrative. Another way to help "take the sting away" is management teams providing a rationale behind the spending, Jim also wrote Sunday. Alphabet's second-quarter capex of $13.2 billion was up 91% year over year and higher sequentially from $12 billion in the first quarter. Alphabet's full-year capex spending is expected to total nearly $50 billion, according to estimates compiled by FactSet. Investors fretting about AI spending is not entirely new.
Persons: , Jim Cramer, Jeff Marks, Jim, Alphabet's, Sundar Pichai, FactSet, Apple, Meta's, Goldman Sachs, Jim Covello, Covello, Jim Cramer's Organizations: Big Tech, Microsoft, Apple, KeyBanc, Markets, Google, Meta, stoke, Wall Street, Wedbush Securities, CNBC, Bloomberg, Getty Locations: capex
Mark Zuckerberg has attracted attention for his style shift from awkward tech CEO to a more laid-back streetwear look. Now, the Meta CEO is embracing memes and using his new image to promote Meta's AI tools. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementMark Zuckerberg can't get enough of his chains — and he's leaning into the memes about it to promote Meta's new AI tools. The internet was taken by his new aesthetic and the endearing story behind his chain, designed with his daughters in mind.
Persons: Mark Zuckerberg, Organizations: Service
Read previewDonald Trump is again railing against Big Tech, accusing both Meta and Google of censoring content about him in "another attempt at RIGGING THE ELECTION!!!" In a post Tuesday on Truth Social, Trump referenced a photo taken after his assassination attempt that a Facebook communications exec previously acknowledged had been mistakenly fact-checked across the social network. The New York Post also reported Monday that after asking about the assassination attempt, Meta's AI assistant had responded that the event had never happened. Still, Trump urged his followers on Truth Social Tuesday to "GO AFTER META AND GOOGLE. Zuckerberg had called Trump a "badass" for surviving his assassination attempt, but that didn't stop Trump from threatening to send the Facebook cofounder to prison if he's elected.
Persons: , Donald Trump, Trump, Dani Lever, Lever, Mark Zuckerberg, Zuckerberg, he's, Elon Musk, Elon Musk —, Harris • Donald Trump, Donald Trump Jr, Ted Cruz — Organizations: Service, Big Tech, Social, Facebook, Business, New York Post, Trump, Google
Meta announced AI Studio in the US for creating custom AI characters. Users can personalize AI profiles to interact on Instagram, Messenger, WhatsApp, and the web. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . The company announced Monday that it is rolling out AI Studio in the US, a tool for users to create their own custom AI character. Creators can use these AI profiles as extensions of themselves to talk to followers and friends on Instagram, Messenger, WhatsApp, and the web.
Persons: Meta, Mark Zuckerberg, Organizations: Service, Business
Read previewAll eyes are on Meta Platforms with the company set to report its second-quarter earnings results after the market close on Wednesday. AdvertisementHere's what Wall Street expects from Meta's second-quarter earnings report. Looking forward, Post highlighted that a potential TikTok ban in early 2025 could provide a big boost to Meta's advertising business. Advertisement"With political spend, and potential TikTok ban in 1Q'25, Meta could also see an ad spend benefit in 2H'24," Post said. The company also has the potential to offer guidance on the monetization potential of its licensing of Llama, its open-source large language model.
Persons: , Meta, Justin Post, Ronald Josey, Josey, Wells, Wells Fargo, Ken Gawrelski, Gawrelski, Mizuho, James Lee, Lee, Mandeep Singh, Singh Organizations: Service, Meta, Nvidia, it's, Business, Bank of America, Citi, Cannes, Mizuho, Bloomberg Intelligence Locations: monetizing, Wells Fargo
Mark Zuckerberg sees a future where we're all wearing AI-powered technology. Speaking with Nvidia CEO Jensen Huang at the SIGGRAPH conference on Monday, the Meta CEO said he foresees the rise of smart glasses in particular. AdvertisementMeta launched its smart glasses, a collaboration with the eyewear brand Ray-Bans, in 2021. Earlier this year, the company announced an update to Meta AI that enabled the tech to work for wearers. While the original Google Glass was a commercial flop, the recent advancements in AI technology have resulted in renewed interest in bringing the next generation of smart glasses to market.
Persons: Mark Zuckerberg, Jensen Huang, Zuckerberg, Huang, Ray, Ban Metas, let's, Ban, Oakley Organizations: Service, Nvidia, SIGGRAPH, Business, Meta, Inc, Google Locations: WhatsApp
AI models, such as OpenAI's ChatGPT or Anthropic's Claude, are built by running complex algorithms on large amounts of data. Khodjamirian, who also manages the Monopolies and Oligopolies ETF , named four stocks that he sees as potential winners: Moody's , S & P Global , MSCI , and Intuit . Moody's Using Moody's as a prime example, the fund manager highlighted the company's extensive database on credit decisions. MCO 5Y line S & P Global and MSCI Similarly, Khodjamirian sees potential in S & P Global and MSCI due to their vast troves of financial and index data. His thesis rests on the idea that as AI use becomes more widespread, the value of software — the AI models — may diminish.
Persons: Yuri Khodjamirian, Claude, Khodjamirian, CNBC's, Moody's, they're, Warren Buffett's Berkshire Hathaway, MCO, Meta, Warren Buffett's Organizations: Tema ETF's, P, Intuit, Facebook, Microsoft Locations: Tema, Moody's
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewMeta CEO Mark Zuckerberg didn't let the tomatoes touch after he cut them into perfectly uniform slices. "In our company, I want every engineer and every software developer to have an AI or many AIs," Huang said to Zuckerberg. Huang and Zuckerberg have big stakes in that vision coming true, according to Paul Baier, CEO and principal analyst at GAI Insights. Huang needs to ensure LLMs keep building with Nvidia chips and Zuckerberg needs Huang's credibility to bolster his semi-open-source strategy.
Persons: , Mark Zuckerberg didn't, Huang, Zuckerberg, Google's, Meta's, Meta, Paul Baier, Baier Organizations: Service, Business, Nvidia, Meta, Microsoft, AIs Locations: Hawaii
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewNvidia's Jensen Huang and Meta's Mark Zuckerberg swapped jackets once again. This time, Zuckerberg gifted Huang another black leather jacket, though this one was bulkier and had a hood similar to Zuckerberg's brown coat. In return, Huang gave Zuckerberg the black leather jacket off his back. Following his talks with Huang, Zuckerberg posted a video of him trying on a large gold chain gifted to him by rapper and singer T-Pain.
Persons: , Nvidia's Jensen Huang, Mark Zuckerberg, Zuck's, Huang, Zuckerberg, it's, Zuckerberg —, Meta, Ban, we're Organizations: Service, Business, Meta, Ray, Nvidia Locations: tech's, Asia
Meta has agreed to pay $1.4 billion to settle a lawsuit by the state of Texas over the Facebook owner's unauthorized use of biometric data by users, Texas Attorney General Ken Paxton said Tuesday. The suit, filed by Paxton in February 2022, accused Meta of capturing and using the biometric data of millions of Texas residents — which was contained in uploaded photos and videos on Facebook — without legally required permissions. Meta will pay out the $1.4 billion to Texas over five years, the office said. "Any abuse of Texans' sensitive data will be met with the full force of the law," Paxton said. Paxton's office is continuing to press a lawsuit against Alphabet , which accuses the Google owner of illegally collecting biometric data from millions of Texans.
Persons: Mark Zuckerberg, Meta, Ken Paxton, Paxton, McKool Smith, Keller Postman Organizations: U.S, Capitol, Facebook, Texans, Meta, CNBC Locations: Washington , U.S, Texas, Meta, Harrison County
Read previewFor a while now, AI stocks have seemingly had the ability to defy gravity. This week, tech companies central to the generative AI boom, including Amazon, Apple, Microsoft, and Meta, report earnings at a time when the market rally they've helped drive teeters on the brink of a correction. If its Big Tech peers also struggle to tell investors that AI isn't just sucking up cash, we might see the AI rally lose some steam. AI hype faces a major testThe rationale behind why AI stocks have been able to defy gravity is pretty simple. Since March, gains in the S&P 500 have been driven by chip firms like Nvidia and the so-called "Fab Five" AI Big Tech stocks, including Alphabet, Amazon, Apple, Microsoft, and Meta.
Persons: , they've, robotaxis, Sundar Pichai, Jensen Huang, Tim Cook, Meta's Mark Zuckerberg, Satya Nadella, OpenAI, Dan Ives Organizations: Service, Apple, Microsoft, Meta, Nasdaq, Tesla, Google, Business, Big Tech, Apple Intelligence, Nvidia Locations: Silicon
The topic of Temu and Shein's growth will hover over tech earnings this week, as Amazon reports second-quarter results alongside Meta, eBay and Etsy. watch nowIn Amazon's report on Thursday, the company is expected to show revenue growth of about 11% to $148.6 billion, according to LSEG. That's where Temu and Shein come into play, as merchants now have new ways to get products to American consumers. Amazon has continued to highlight its delivery prowess and its focus on speed in the face of growing competition from Temu and Shein. However, while it's long touted itself as the "lowest-priced U.S. retailer," Amazon has shown that it's well aware of Temu and Shein's increasing popularity.
Persons: Stefani Reynolds, David Zapolsky, Zapolsky, it's, Shein, Andy Jassy, Jassy, It's, Angus Mordant, Temu, Meta, Susan Li, Jamie Iannone, Etsy, Amazon, Amazon's Zapolsky Organizations: Apple, CNBC, Afp, Getty, eBay, Meta, Etsy, Tech, YouTube, Microsoft, Intel, Qualcomm, Google, PDD Holdings, Amazon, European Union, Bloomberg, Barclays, Finance, EBay, Bank of America, Walmart Locations: U.S, China, Temu, New York, Asia, Pacific, San Francisco, Singapore
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. I started in engineering roles but soon realized my passion for technology and storytelling, which drove me toward marketing communications. AdvertisementTo get promoted at Meta, you need to perform and collaborate effectivelyThe promotion process at Meta involved a twice-a-year performance review cycle. The size of Meta was a new experience for meThe company's size was unlike any I had worked at before. I decided to leave Meta for personal reasonsAfter the demanding pandemic years, I wanted to spend more time with my family.
Persons: , Alexandru Voica, I've, wasn't, I'm, Lauryn Haas Organizations: Service, ARM, Business, Ocado Group, Meta, Big Tech Locations: London, Romania, Cambridge, Abu Dhabi, Meta, Big, lhaas@businessinsider.com
Stock Chart Icon Stock chart icon Illumina's year-to-date stock performance. Stock Chart Icon Stock chart icon Bank of America's year-to-date stock performance. Stock Chart Icon Stock chart icon Constellation Energy's year-to-date stock performance. Stock Chart Icon Stock chart icon Meta's year-to-date stock performance. Stock Chart Icon Stock chart icon Organon's year-to-date stock performance.
Persons: one's, Jim Cramer's Organizations: of America's, Bank of America, Constellation Energy, ICICI, ICICI Bank, Pfizer, Organon Locations: India
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