Meta’s Tepid Revenue Outlook Undercuts its AI Spending Spree

“We’ve expanded the context that we can take into account around a person’s organic and ads activity to determine an ad’s relevance, driving significant increases in relevance and conversions on both Facebook and Instagram,” Zuckerberg said.

But Wall Street is no longer blindly rewarding AI investments. Company shares slipped Wednesday in after-hours trading in response to Meta’s lower-than-expected earnings and lackluster Q3 revenue guidance.

The key quote

Zuckerberg doubled down on Meta’s push into enterprise AI, saying “there’s an opportunity to extend” the agentic approach the company is taking with consumer-facing businesses—integrating “agents across messaging apps and other surfaces to continue to interact with customers.” In theory, this push will eventually translate to outcomes-based pricing—“Just like the ads system,” Zuckerberg said. “Effectively we will get paid when we deliver results for those businesses.”