Meta is not afraid of DeepSeek, and its stock price continues to hit a new high after its financial report is impressive

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ABMedia
01-30
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Social media giant Meta released its fourth-quarter earnings, with profits and revenue exceeding expectations. Zuckerberg discussed DeepSeek in the conference, stating that open-source AI is important and must be a US standard, and Meta is digesting and incorporating the advantages of DeepSeek. Meta will also continue to increase capital expenditures as the AI boom cannot be missed. Buoyed by the impressive earnings report, Meta's stock price rose to $687.99 after hours, setting a new all-time high.

Meta Revenue and Profit Exceed Expectations

Meta's sales grew 21% year-over-year to $48.39 billion, exceeding Wall Street's expectations. CEO Mark Zuckerberg is confident about 2025, predicting that the Meta AI assistant will help the company grow from its current 700 million users to 1 billion.

Zuckerberg Discusses DeepSeek: Open-Source AI is Important, Must be a US Standard

In the earnings call, Zuckerberg mentioned DeepSeek and stated that it is still too early to judge the impact of the breakthrough AI model DeepSeek on his company and the broader tech industry.

(China's AI Rise! US Stock Futures and Bitcoin All Decline: What's the Difference Between DeepSeek and ChatGPT?)

Nevertheless, Zuckerberg poured cold water on the notion that Meta's overall AI spending will soon decline, as DeepSeek has allegedly proven that the funding and computing resources required for cutting-edge AI are much less than previously thought.

Zuckerberg said that Meta is still digesting some of DeepSeek's accomplishments, and his team hopes to eventually apply some of the advancements to their own AI projects. Meta will continue to learn from technologies like DeepSeek and release its own open-source free Llama AI model, which can also drive industry development.

Zuckerberg also stated that the emergence of DeepSeek validates Meta's commitment to open-source AI. "There will be a global open-source standard," he said. "It's very important for our own national interests to adopt the US standard."

Meta Continues to Increase Capital Expenditures, Cannot Miss the AI Boom

Meta CEO Mark Zuckerberg announced on 1/24 that the company plans to invest up to $65 billion in AI-related fields by 2025, including building a massive data center and increasing the recruitment of AI teams. Zuckerberg repeatedly emphasized that the AI boom cannot be missed, as the risk of losing billions of dollars is better than missing the major changes in the computing field. This is because the disadvantage of falling behind is that the most important technologies cannot be mastered in the next 10 to 15 years.

(Zuckerberg: Meta Will Invest $65 Billion in AI in 2025)

Alongside the expanding AI investments, Meta has also begun organizational adjustments. Meta announced at the beginning of 2025 that it will lay off 5% of its employees, mainly to strengthen the company and prepare for the future development of AI, smart glasses, and social media.

Meta Stock Price Reaches New High

Buoyed by the impressive earnings report, Meta's stock price rose to $687.99 after hours, setting a new all-time high.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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