Zuckerbergs image is in trouble – but Metas business is booming
In the end, the bulk of users may be willing to make some concessions on privacy if it means convenience and utility, says Moorhead. “If the consumer sees the trade-off as beneficial, then they’ll keep it going,” he says. “This is why Facebook and Instagram still have billions of users.” On the financial front, the…
In the end, the bulk of users may be willing to make some concessions on privacy if it means convenience and utility, says Moorhead. “If the consumer sees the trade-off as beneficial, then they’ll keep it going,” he says. “This is why Facebook and Instagram still have billions of users.”
On the financial front, the social media advertising business – its cash cow – routinely brings in significant revenue. Meta reported $60.8bn in revenue and $15.9bn in profit for the second quarter of this year.
Consistent profits have helped fuel bets from the much-mocked Metaverse, to its current mass expansion of AI infrastructure.
And on Muse? “It’s a very real time-saving benefit that a lot of people will want and will like,” says Winick.
AI investment is not cheap. Meta has now taken on $83.7bn in long-term debt, according to its most recent financial statement.
Still, Meta executives are bullish about the company’s pivot to AI. “It’s really about your agent, who can do work on your behalf, who is your constant ally in whatever you’re trying to accomplish in your goals in your life,” Andrew Bosworth, the company’s chief technology officer, said in an interview with the BBC.
Meta has big plans. But its future may ultimately depend on whether its users can trust it.
Top image credit: CTMG, Inc./Leah Gallo
