Facebook (Meta) and Amazon are on the rise in the stock market after a “surprisingly good year”

Meta And Amazon Wall Street cheered Thursday, February 1, with better-than-expected quarterly results, with both groups benefiting perfect holiday seasoncost reduction in 2023 and rapid integration of management toolsArtificial intelligence (AI) in their services. the main company of FacebookInstagram and WhatsApp have been obtained 40 billion dollars turnover in the fourth quarter, of which it generated a net profit of 14,000 million. His title jumped 14% in electronic trading, after the close of the New York Stock Exchange, also supported by a stock buyback program.

“2023 was a surprisingly good year for Meta”commented independent analyst Debra Williamson. “Four factors contributed to the team’s recovery: Investments in AI To improve advertising performance, advertisers have increased their demand for Reels (short videos). Chinese advertiser spending (Shein, Temu) and the continuous growth of the number of monthly users of the applications ». In total, nearly 4 billion people use at least one of the company’s platforms every month. “Our communities are growing and our business is back on track”he welcomed in the speech to the analysts Mark Zuckerberg, the leader of the group, who launched Facebook twenty years ago in a room at Harvard University.


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“Year of Effectiveness”

Amazon, for its part, saw its revenue rise 14% more than a year, reaching 170 billion dollars from October to December. His net profit came 10,600 billion dollars. Enough to satisfy Wall Street, where the group’s stock rose 7%. A year ago, after a disaster for Meta 2022, Mark Zuckerberg promised a “effective year”. It hasn’t been easy, between the dismissals, doubts about the metaverse and the anger of the authorities, who accuse the Californian group of putting its profits before the safety and health of its users. But for the market, the main one “was on duty” of his promise, Jasmine Enberg of Insider Intelligence stated.

“Meta may not be as innovative as Facebook was 20 years ago, but it knows how to implement it” citing his strategy, in his view, to integrate new artificial intelligence (AI) technologies into his platforms and the partnership signed with Amazon in the fourth quarter. Confront the progress of TikTok in direct sales within the application. The Menlo Park team will have to do it anyway “prove that his two big bets – AI and the metaverse – are complementary”, specifies Reality Labs, the division responsible for developing augmented and virtual reality tools and applications, widened its losses by 17% to $16 billion in the past year.


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Advances in creative AI

But Mark Zuckerberg doesn’t move: the next mixed reality platform “It will provide a realistic sense of presence that will be at the heart of social experiences in the future”, he announced. The executive also praised his teams’ progress in AI creation, even though AI agents and other automated content production tools won’t bring in much revenue this year. Meta “He can talk all he wants about AI and the metaverse, it’s still a leading social media company almost all revenue from advertising»reacted Debra Williamson.

Rufus
Amazon also remembered that it was “very early” For creative AI. “Almost no other technology gives us the ability to reinvent so many experiences for our customers”said Andy Jassy, ​​head coach of the Seattle team. “We believe it will generate tens of billions of dollars in revenue for Amazon over the next few years.”. The e-commerce giant launched a trial version of Rufus on Thursday, a AI assistant to advise customers.


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Faster and faster deliveries

For now, Amazon owes its performance “A pretty good year-end celebration in the US”, analyzes Sky Canaves, from Insider Intelligence. The expert mentions “Strong Internet Spending”, especially to low-cost categories (food, beverages, health, personal care, etc.). In particular, Amazon took advantage of the period, from its promotional event in October to Thanksgiving and Christmas. “thank you optimization of its logistics network enabling faster shipping ».

But doubts remain in this market, which is exploding with the rise of AWS, Amazon’s cloud (remote computing) arm, a world-leading AI creator. AWS revenue for the quarter was $24.2 billion (+13%). Acceleration of growth as well “light”According to Sky Canaves, to reassure investors.

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