browsing the feed feels like a confirmation of AI skeptics’ biggest criticisms
by Victoria Song
So far, prompting AI chatbots — those are the questions or requests you make — has primarily been a private affair. You pull up ChatGPT, Claude, or Gemini, type in your prompt, and whatever it spits out is for your eyes only — unless you take a screenshot and terrorize the world by posting your AI experiments online. But not with the Meta AI site
you can share your AI results with just two clicks
The result is a fascinating microcosm of the human-AI experience and, specifically, how so few people know what to do with generative AI. The irony is that Meta VP of product Connor Hayes told The Verge the company added the whole social aspect to show AI newbies what they can use it for
the social feed feels more like a poster for all the complaints people have about AI
It’s not something that proves AI searches are inherently better
I don’t think I’ve come away with new ideas of how to prompt AI either
The public nature of the feed can feel creepy
Wading into the feed can sometimes feel like eavesdropping on thoughts you weren’t meant to see or hear. This prompt, for example, feels an awful lot like I’ve wandered into a therapy session where I watch someone convince Meta AI to validate their decision to dabble with Bitcoin
There’s also this extremely detailed image request for a “sultry Asian beauty exud[ing] bad girl energy at night” and the thirteen user attempts to get it just right
It makes you wonder how much of the feed was accidentally shared
Probably very little; you have to deliberately hit the share button
which triggers a large window alerting you that you’re about to post everything publicly
You then have to actually click a separate ‘Post’ button
it also feels weird that people want me to see this
That you can comment on people’s results adds another interesting dynamic
chatting with AI has largely been a private affair
Would you prompt differently if you knew that other people would eventually see
Meta is just the first to add a social feed to its chatbot. OpenAI is reportedly working on its own version for ChatGPT. And Elon Musk’s Grok chatbot is now available to all X users
Creating something shareable inevitably leads to viral trends that
encourage people to see what AI is all about
The trick is giving the average person — not first adopters
not tech evangelists — enough reason to stick around
I’m a naturally curious person who has fun poking at AI chatbots
I can find plenty of things to gawp at or pique my interest
A weekly newsletter by David Pierce designed to tell you everything you need to download, watch, read, listen to, and explore that fits in The Verge’s universe.
Meta is bringing its large language model chatbot to WhatsApp, Instagram, and Messenger users with a variety of new ways to generate AI responses and images
The decision by Mark Zuckerberg's Meta to force its Artificial Intelligence (AI) onto billions of users via a mandatory update to WhatsApp hasn't gone down very well. In case you've missed it
Meta has added a glowing -indigo-violet circle in the corner of your WhatsApp that cannot be switched off
the latest generation of large language model (LLM) from the Californian company
which is run by Facebook co-founder Mark Zuckerberg
Tapping the icon launches a one-on-one conversation with Meta AI — a chatbot that competes with the likes of OpenAI's ChatGPT, which is built directly into Windows 11 and accessible via Siri on the latest iPhone models
When trying to tag friends and family in messages
typing the @ symbol within a WhatsApp conversation will now also suggest Meta AI
Tagging the chatbot in an ongoing conversation will let you access all of its features without leaving the chat window
everyone will be able to see the original prompt to @MetaAI and its AI-generated response
Meta says only its Artificial Intelligence will be able to read messages with the @Meta AI command ...so your messages with friends and family should stay away from prying eyes
despite the chatbot intervening with an answer to your query
Meta AI is also baked into Meta's other immensely popular services
it seems to be WhatsApp — the most popular messaging platform on the planet
with over 2.5 billion users across Android and iOS — where the addition has caused the biggest stink
There's no way to switch off Meta AI..
Powered by Meta's latest Llama 4 large language model (LLM)
Meta AI can answer general knowledge questions
or conjure never-before-seen imagery based on a written prompt ...everything we've come to expect from ChatGPT
WhatsApp users will need to use the word "imagine" at the start of the message to kickstart the image-creation tool
It can be used to dream-up still pictures as well as animated GIFs that you won't find anywhere else
Irritated app users have flooded social media to express their frustration with the new Meta AI feature
"Why the hell do we need an AI in a chat app
It is so annoying," complained one WhatsApp user on social news site
Another added: "The search part is the most annoying
am just trying to search someone's name not ask GPT to make a picture."
Meta AI can dream-up new images and animated GIFs from a written prompt
with audio and video on the roadmap for the technology in the coming months
one user asked: "Anyone else feeling like their phone just got a clingy new roommate?"
Others have branded it "bug-ridden rubbish" and "pointless and irritating"
WhatsApp's parent company Meta has no plans to make the button removable
The Californian company has defended its implementation of the new feature
insisting it's "entirely optional" ...despite users being unable to remove it from their screens
Digging into the Settings screen in WhatsApp on both Android and iOS
there is no option to reposition or remove the circular icon for Meta AI
A spokesperson for Meta told The Daily Telegraph: "We think giving people these options is a good thing
and we’re always listening to feedback from our users to make WhatsApp better."
Meta maintains that personal messages remain end-to-end encrypted
It has likened the arrival of Meta AI to other now-permanent fixtures in the chat app
both of these currently sit outside of the main list of individual and group chats
The Information Commissioner's Office told the BBC it would "continue to monitor the adoption of Meta AI's technology and use of personal data within WhatsApp."
WhatsApp is planning to introduce even more AI features to its immensely popular services
The messaging app recently announced it would explore adding AI-powered writing suggestions and message summaries under a new suite of tools called 'Private Processing'
These features are expected to be made available in the coming weeks — a decision that's likely to frustrate many WhatsApp users who are already unhappy with the current AI integration
accused Meta of "exploiting its existing market" and "using people as test subjects for AI."
"No one should be forced to use AI," he told the BBC
Mark Zuckerberg’s Meta launched a standalone artificial intelligence app Tuesday
putting it in direct competition with OpenAI’s ChatGPT and marking the latest app to release as part of the larger AI race
(Photo by DREW ANGERER/AFP via Getty Images)
Meta announced the launch of the app
which features an AI chatbot and a “discover” feed that allows users to see how others are using the assistant
The app uses Meta’s Llama 4 model, which was released early this month and has been touted by Meta as being more cost-efficient than competitor models like Gemini
Meta’s AI assistant could already be used on WhatsApp
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The app gives users access to image generation
image editing and a voice mode that can be interacted with while using other apps on a device
The AI chatbot can answer questions using the web and use information users have shared on Meta products such as their Facebook profiles or the content they like on the social media app
Those who link their Facebook and Instagram profiles to their account center can create a more personalized experience when interacting with the Meta AI app
Users with Ray-Ban Meta glasses will be able to interact with Meta AI on the glasses and the app
enabling them to begin conversations through the eyewear and resume them through the app
The Meta AI app also features a voice assistant demo that provides more conversational responses
though it does not have access to the internet or real-time information
Meta’s stock was up a little over 1% as of 2 p.m
continuing a rise following its lowest point of the year on April 21
Shares of the tech giant are down 7.3% in 2025
Microsoft (Copilot) and Anthropic (Claude) all have AI Apps
Elon Musk’s xAI launched a standalone app for its Grok chatbot in January
Similar to how Meta’s AI was once exclusively on the company’s social media apps
meaning it can train highly optimized models across a unique data set,” Kyle Hill
chief technology officer of business technology firm ANS
“Meta has an opportunity to stand out from the crowd
but it needs to figure out what its killer differentiator is.”
that is capable of training AI models at exceptional speeds
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Goodbye to the old Facebook - Zuckerberg admits he no longer connects family and friends
faces FTC lawsuit that could dismantle Meta
This trial has been open since April 14, and it has revealed some incredible facts, such as that the purchase of those last two social networks, WhatsApp (one billion dollars) and Instagram (19 billion dollars), could be an illegal strategy. On the stand, Zuckerberg himself admitted that Facebook is no longer used to connect with family and friends. Want to know more about what’s happening to Meta? We’ll tell you below.
During his testimony, Zuckerberg admitted that the social network that made him a billionaire is no longer what it used to be. Today, he explained, Meta is no longer about personal relationships. Meta is focused on content, discovering viral trends, and following global conversations. He said it himself: what used to be a platform to share pictures of your cat with distant relatives or childhood classmates is now a showcase where the algorithm is in charge.
The trial also focused (a lot) on Meta’s two most controversial acquisitions: Instagram (in 2012) and WhatsApp (in 2014). Zuckerberg defended both decisions. He said those platforms wouldn’t have survived without Meta’s investment, and now they’re essential tools for billions of people. Basically, his argument was: “We didn’t destroy them, we made them bigger”
Meta insists it’s not acting alone. Platforms like TikTok, Reddit, YouTube and X (formerly Twitter) are cited as direct competition. The company also reminds everyone that all of its acquisitions were legally approved at the time. And of course, undoing them now would just be changing the rules of the tech game.
The trial will extend until July 2025. If the FTC wins this first phase, a second and even tougher stage would begin, aiming to argue that forcing Meta to sell Instagram and WhatsApp would directly benefit competition and consumers.
Basically, the future of how large digital platforms work. If Meta loses, it wouldn’t be surprising if other giants like Google or Amazon start facing similar lawsuits. Pressure against big tech isn’t new, but this time, the one on the ropes is Zuckerberg. And this time, there’s no “like” button to save him
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FacebookThreadsRSSThe long-awaited antitrust trial between Meta and the Federal Trade Commission kicked off on April 14th
DC District Court Chief Judge James Boasberg is hearing arguments about whether then-Facebook illegally monopolized the market for “personal social networking services” through its acquisitions of Instagram and WhatsApp
The FTC first brought the case in late 2020
While it was initially thrown out by the judge
he let an amended version move forward after the government beefed up details about why it thinks Meta is a monopoly
This phase of the trial will help the judge determine if Meta is liable for breaking antitrust law
he’ll later rule on how those harms should be remedied
The FTC is pushing for Instagram and WhatsApp should be spun off
This is the third US trial seeking to break up Big Tech in recent years, following the Justice Department’s two separate cases against Google over its search and ad tech businesses
Read below for all of our updates on the FTC v
Lauren Feiner
The judge opted to watch video testimony slated for the day in his chambers
We’ll go live again this week when the trial continues
A 2014 chat log between Systrom and Deng seems to undercut Deng’s testimony that he doesn’t recall Meta scaling back growth resources for Instagram
Deng says he doesn’t have enough context to confirm what he and Systrom were discussing
but described the chat as a “knee-jerk reaction” to an email they mentioned at the time
“Am I reading correctly we now have less growth support
“This isn’t great for us,” Deng wrote at the time
Deng, who moved to Instagram in 2013 until 2015 after working on Facebook Messenger, is challenging Instagram co-founder Kevin Systrom’s testimony that the app could have reached the same success without Meta and that the company deprived it of resources
Deng says Meta helped Instagram with speeding up high quality hiring
and sharing infrastructure and growth team staff
Deng left Instagram several years before Systrom departed the company
who led product for Facebook’s messenger product in the early 2010s
says he was not worried about WhatsApp growing into a big rival in the US
Since many people in the US had iPhones where they could send mobile messages including photos through iMessage
“people just expected more here than just text messaging,” which was the focus of the simple WhatsApp service
“There’s nothing about what they did that signaled they remotely wanted to get into more expressive messaging.” he says
Former product executive Peter Deng warned colleagues about the existential threat of mobile messaging apps moving into Facebook’s core space
he called messaging rivals “the biggest threat to our product that I’ve ever seen in my 5 years here at Facebook; it’s bigger than G+
referring to Google’s now-defunct social media competitor
“These guys actually have a credible strategy: start with the most intimate social graph (i.e
and build from there.” Deng testifies he was referring to the three mobile apps that had started adding such features
and not the one Facebook ultimately acquired: WhatsApp
Former TikTok director of UX research Eric Morrison testifies in a short video deposition that as of 2022
TikTok “was not necessarily serving that need to connect to people that you already know.” This is the need that the FTC says Facebook and Instagram uniquely fill
alongside the smaller apps Snapchat and MeWe
Hegeman concedes that even with TikTok becoming a more significant competitor in the past two years
Facebook’s user base and the time users spend on it have continued to grow
Hegeman says that the (not publicly disclosed) number of users who opted out of off-app tracking through Apple’s App Tracking Transparency policy mostly reflects Apple’s scare tactics in framing the question to users
rather than whether users actually prefer not to share their data with Meta
He adds that Apple frames the ask very differently when asking users about similar opt-ins for its own products
“I think it’s a clear example of them trying to leverage their position controlling the iOS operating system to advantage their position in the market,” he says
Meta realized that focusing on surfacing friends and family content wasn’t helping it as much as it had hoped
Competitors like TikTok were taking over a lot of time users would spend online
and Hegeman says Meta found it to be a better strategy to broaden the focus of the Facebook app to include investments in video and other kinds of content
Meta found that by reducing the relative amount of ads some groups saw by 80 percent
it only saw about a 3 percent increase of a usage metric
This shows ads aren’t a major cost for consumers
because if a company like Apple lowered the price of its iPhone by 80 percent
it would likely see much more than a 3 percent increase in sales
Meta began offering an ad-free version of its products there for 6 Euros a month
Hegeman says — just about 0.007 percent of users opted to pay for the service
Meta found when it tested a new system to customize how many ads it shows based on how much a user likes or dislikes them
The time they spent on the platforms and engaged on it didn’t change much
“This change had a minimal impact on people’s experience and was not very noticeable,” Hegeman says
That’s presumably because when users are given an option to give Facebook and Instagram less data
at least a significant chunk of them take it
since the judge sealed the courtroom to discuss internal metrics like how many people opted into the tracking
That’s theme of the FTC’s questioning of Meta’s CRO
The FTC’s Stephen Pearson is asking about what Meta says it collects in its privacy policy
and points out that if Instagram were independent
Meta uses this data to fuel personalized advertising
Pearson is also beginning to touch on ad load — or the relative amount of ads to organic posts users see in their feed — which the FTC has tried to show Meta can increase with relatively little risk of losing users
the top executive in charge of monetizing Facebook and Instagram
He previously led product management for the Facebook feed
What users say they want and what they show they want through their actions can be two different things
Cobb illustrates this point with the example of chronological feeds
While users repeatedly report this as a feature they’d like
Cobb says every time the company has tested it
satisfaction with the app declines and users’ engagement changes
But that dip soon recovered, Cobb testifies. He’s referencing the sweeping content moderation and fact-checking policy changes CEO Mark Zuckerberg announced in January just ahead of President Donald Trump’s inauguration
Dips in how users feel about Meta’s brand are often correlated to media coverage — not necessarily actual changes to the product
Meta research executive Curtiss Cobb testifies on cross-examination
The FTC had tried to frame the fact that users don’t leave the apps in droves after reporting feeling worse about Meta’s brand shows they’re locked in due to Meta’s alleged monopoly
by showing that just because users feel worse about the brand after a specific media event doesn’t mean that its products are getting any worse — and that might be reason enough to stay
A June 2019 document says that the data privacy scandal “is the most likely significant event that would have had a negative impact on both revenue and engagement.” But even so
“we failed to detect significant and consistent effects of sentiment (or adverse events) on these metrics.” Cobb quibbled with how the FTC’s attorney restated the finding back to him
and Boasberg noticeably leaned back in his chair and rolled his eyes after a repeated back-and-forth
Meta found that a majority of Facebook users came to the platform for this reason
A document from the time describes “Facebook’s core value proposition” as “robustly anchored on ‘keeping up with friends and family,’” which is exactly the trait the FTC says is unique to personal social networking services
Cobb makes a point of saying that this was true at the time
DC courthouse discussing the US law that — at least on paper — effectively banned the app
it’s serving as a witness for the government
On Wednesday, TikTok’s head of operations and trust and safety Adam Presser testified in the Federal Trade Commission’s antitrust trial against Meta, in the same courthouse where a panel of judges ruled that the government could expel TikTok from the country
Presser’s role in the Meta trial was to explain the ways in which TikTok competes (or doesn’t) with Meta’s services in a market the FTC has defined as personal social networking — a category the FTC says contains only Meta’s services
His team surveys Facebook and Instagram users about how they feel about whether the company cares about its users
the team found that “in the US this year Facebook has slid to the 21st place and falls behind all other tech companies we measured” in the metric it calls “Relative Cares About Users” or RCAU
Drawing on filings in TikTok’s litigation against a US ban
Meta points out that TikTok has said it could take years to perform the maintenance needed to keep a US-only app running if it were separated from ByteDance
TikTok also said that reconfiguring its content moderation systems for a US-only app would reach unsustainable costs
despite serving a platform of 170 million US users
Meta is drawing a comparison to how it believes it was uniquely positioned to help Instagram with its infrastructure and content moderation because of its own scale and success
My experience wasn't quite an absolute win
My in-flight Quest 3 experience was somewhat turbulent
but before a recent trip from London to Miami I’d never taken one with me on a flight – and until some key things change
my troubles began before we took off – in fact
they began before I’d even left home
Checking Meta's app store I was surprised to find no ‘flight-approved’ category that would easily supply me with software recommendations
And searching for movie downloads was much more of a challenge than I expected
While the Quest supports streaming platforms like Netflix
the browser-based (rather than app-based) reveals displays its faults clearly
In this form it's an online-only service as it's impossible to download content to watch later offline
Eventually I sourced a digital copy of Avengers: Endgame in 3D
but it wasn't a hassle-free process – far from it
I also found a mixed-reality chess game I thought might be fun
not realizing it was an online-only title until I was in the air
After my meal had been served and the seat belt sign had been switched off so I could fetch it from my stowed bag
I donned my Quest 3 and dove into the metaverse
armed with my limited entertainment selection
Not just the movie itself (I haven’t watched it since the midnight release showing years ago and I’d forgotten how great it was) but the overall experience
I had installed Bigscreen – a free app which transports you to different cinema screen environments to watch movies in – but ended up just using the Meta TV app in mixed-reality mode
I could dim my surroundings and enlarge the screen so it felt like I was in my own private movie theatre
but I wasn't shut off from my surroundings
so I could pay attention if a flight attendant walked past with food or drink
It was leagues ahead of the dinky screen installed in my seat that I'd have had to rely on for entertainment otherwise
Not being in VR helped during turbulence too
Because I could see the real world shaking thanks to the MR passthrough feed I didn't feel particularly nauseous during the ordeal
something I suspect wouldn’t be the case had I been in VR
I was able to watch one hour of Endgame in mixed reality using just under 50% of my Quest 3's battery life
With a charging cable and power bank I could extend this use time
but relying solely on the Quest 3 as inflight entertainment for a long voyage would clearly be a challenge
You could mitigate this with an add-on like the one of the Kiwi Design battery straps I've reviewed
but then you’d run into the next problem: bag space
Baggage space on an airline comes at a premium
and filling your carry on with a fully kitted out VR headset setup is a non starter
So I replaced the bulky battery strap with the more compact (and less functional) elastic strap
This reduced the space the Quest 3 took up considerably
but it still wasn't compact – especially with the controllers
With these battery and space issues in mind it feels like a VR headset would be ideal for a shorter (sub-four-hour journey) where you’re struggling for baggage space across the hold and cabin so carrying the headset wouldn’t be a problem
I should also note that I was flying in Virgin Atlantic's premium economy section
In a more tightly packed economy seat I could see my arm movements being annoying to any stranger unlucky enough to be sitting next to me
making VR way too impractical (and risky) to be viable outside of more premium classes
but it’s also more of a battery sink
Despite these issues I could see how close the Meta Quest 3 is to greatness
and how the in-flight experience could be improved with a few upgrades
A bigger in built battery would be ideal too
as would a simpler way to find and download movies to the headset
and it just serves to highlight why Meta and others must do more to improve this aspect of VR as finding even one 3D movie was a major hassle
but I'll admit to feeling a little tense while in the air
and that tension was noticeably absent when using my Quest 3
So while I won't be taking my Meta headset on my next long-haul flight
I can see a future where it becomes my go-to travel gadget
Hamish HectorSocial Links NavigationSenior Staff Writer
NewsHamish is a Senior Staff Writer for TechRadar and you’ll see his name appearing on articles across nearly every topic on the site from smart home deals to speaker reviews to graphics card news and everything in between
He uses his broad range of knowledge to help explain the latest gadgets and if they’re a must-buy or a fad fueled by hype
Though his specialty is writing about everything going on in the world of virtual reality and augmented reality
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Meta stock (NASDAQ: META) recently reported its Q1 results
with revenues and earnings well above the street estimates
It reported sales of $42.3 billion and earnings of $6.43 per share
compared to the consensus estimates of $41.3 billion and $5.22
The company continued to benefit from an increasing user base
Meta Platforms’ revenues of $42.3 billion in Q1 reflected a 16% y-o-y rise
driven by a 5% rise in ad impressions and a 10% growth in average price per ad
Meta also reported a 6% rise in family daily active people (DAP) to 3.43 billion
Meta’s primary revenue stream comes from advertising across its family of apps (Facebook
The company is leveraging AI to enhance its ad targeting capabilities and is investing in AI-powered content generation
Meta is making substantial infrastructure investments
with projected capital expenditures between $64-72 billion for 2025
Not only did the company post higher revenues
Higher revenues and margin expansion resulted in earnings of $6.43 per share
Meta expects its Q2 revenue to be in the range of $42.5 billion to $45.5 billion
the sales are aligning to the street expectation of $44 billion
META stock is trending higher in after-hours trading
Looking at the stock’s performance over a slightly longer period
the increase in META stock over the last four-years has been far from consistent
with annual returns being considerably more volatile than the S&P 500
And it has comfortably outperformed the S&P 500 over the last four-year period
HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride
as evident in HQ Portfolio performance metrics
Given the current uncertain macroeconomic environment surrounding tariffs and trade wars
could META stock experience significant growth
We estimate Meta Platforms’ valuation at approximately $702 per share
representing a 20% upside from its current level of around $580 (after market hours)
Our forecast is based on a 27x price-to-earnings (P/E) ratio
higher than META’s four-year average P/E of 22x
This increased valuation multiple appears justified given the company’s recent strong advertising growth and improved profitability
Ongoing tariff issues may reduce ad spending from China
while Meta’s aggressive AI investments create uncertainty about whether these expenditures will ultimately prove worthwhile and meaningfully boost the company’s future earnings growth
While META stock looks like it has ample room for growth
it is helpful to see how Meta’s Peers fare on metrics that matter
You will find other valuable comparisons for companies across industries at Peer Comparisons
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BREAKING: Berkshire Shares Slide On News Of Buffett Exit
Meta Platforms and Tesla lived up to their name in 2024 with solid gains
performance for these mega-cap stocks has been negative thus far
Due to their outsized market capitalizations
Magnificent Seven stocks hold a disproportionate influence on the market-cap…
Trade war perils are swirling around ocean shippers and the ports that serve them
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with first-quarter revenue beating expectations
The maker of Facebook and Instagram reported $42.3 billion in first-quarter sales, the company said in a statementBloomberg Terminal Wednesday
That topped analysts’ estimates for $41.4 billion for the quarter ended March 31
Meta also said current-quarter revenue will be in line with analysts’ expectations
and that it’s responding to the trade war by rethinking suppliers and projecting higher costs for infrastructure
listening to an audio clip of a woman asking an AI chatbot for medical advice about her sick pet turtle
As someone who loves to lurk in other people's business
The second (which doesn't require the glasses) is to be a stand-alone Meta AI assistant that you may have already encountered in Instagram's and Facebook's search bars
it's a chatbot app that (I guess?) is meant to compete with ChatGPT
like this one I had made of a dog reading Business Insider:
There's also a public feed of other people's AI chats that you can scroll through
Most of this feed is people making silly images — Darth Vader eating ice cream
Some of these came from suggested prompts when you first open the app
your AI chats are not public by default — you have to choose to share them individually by tapping a share button
I get the sense that some people don't really understand what they're sharing
Or another person who was asking for advice about what legal measures he could take against his former employer after getting laid off
Or a woman asking about the effects of folic acid for a woman in her 60s who has already gone through menopause
Or someone asking for help with their Blue Cross health insurance bill
I found all those examples mixed in with funny cartoon images in my public feed
Perhaps these people knew they were sharing on a public feed and wanted to do so
we built Meta AI to connect you with the people and things you care about
a place to share and explore how others are using AI
You can see the best prompts people are sharing
or remix them to make them your own." (I asked Meta for comment.)
Is seeing other people's AI chats even interesting at all
Would it be interesting to see the AI chats of people I know
I barely want to see real photos of people I don't know unless they're incredibly hot; I'm bored pretty quickly by seeing AI slop from a stranger
Is a social AI feed the social feed of the future
Even trying to be as open-minded as possible about this
MENLO PARK, Calif., April 30, 2025 /PRNewswire/ -- Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended March 31
"We've had a strong start to an important year
our community continues to grow and our business is performing very well," said Mark Zuckerberg
"We're making good progress on AI glasses and Meta AI
which now has almost 1 billion monthly actives."
First Quarter 2025 Financial Highlights
except percentages and per share amounts
$ 42,314
$ 36,455
$ 17,555
$ 13,818
$ 1,738
$ 1,814
$ 16,644
$ 12,369
$ 6.43
$ 4.71
First Quarter 2025 Operational and Other Financial Highlights
(1) For more information on our free cash flow non-GAAP financial measure
see the sections entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Results" in this press release
We expect second quarter 2025 total revenue to be in the range of $42.5-45.5 billion
Our guidance assumes foreign currency is an approximately 1% tailwind to year-over-year total revenue growth
We expect full year 2025 total expenses to be in the range of $113-118 billion
lowered from our prior outlook of $114-119 billion
We anticipate our full year 2025 capital expenditures
including principal payments on finance leases
increased from our prior outlook of $60-65 billion
This updated outlook reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware
The majority of our capital expenditures in 2025 will continue to be directed to our core business
we expect our full year 2025 tax rate to be in the range of 12-15%
we continue to monitor an active regulatory landscape
including legal and regulatory headwinds in the EU and the U.S
that could significantly impact our business and our financial results
The European Commission (EC) recently announced its decision that our subscription for no ads model is not compliant with the Digital Markets Act (DMA)
Based on feedback from the EC in connection with the DMA
we expect we will need to make some modifications to our model
which could result in a materially worse user experience for European users and a significant impact to our European business and revenue as early as the third quarter of 2025
We will appeal the EC's DMA decision but any modifications to our model may be imposed before or during the appeal process
Meta will host a conference call to discuss its results at 2:00 p.m. PT / 5:00 p.m. ET today. The live webcast of the call can be accessed at the Meta Investor Relations website at investor.atmeta.com
along with the company's earnings press release
Following the call, a replay will be available at the same website. Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.atmeta.com website
Meta is building the future of human connection
powered by artificial intelligence and immersive technologies
and WhatsApp further empowered billions around the world
Meta is moving beyond 2D screens toward experiences that foster deeper connections and unlock new possibilities
Investors:Kenneth Dorell[email protected] / investor.atmeta.com
Press:Ashley Zandy[email protected] / meta.com/news
Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31
please note that the date of this press release is April 30
and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date
We undertake no obligation to update these statements as a result of new information or future events
For a discussion of limitations in the measurement of certain of our community metrics
see the section entitled "Limitations of Key Metrics and Other Data" in our most recent quarterly or annual report filed with the SEC
To supplement our condensed consolidated financial statements
which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP)
we use the following non-GAAP financial measures: revenue excluding foreign exchange effect
advertising revenue excluding foreign exchange effect
The presentation of these financial measures is not intended to be considered in isolation or as a substitute for
financial information prepared and presented in accordance with GAAP
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool
these measures may be different from non-GAAP financial measures used by other companies
limiting their usefulness for comparison purposes
We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures
We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business
enable comparison of financial results between periods where certain items may vary independent of business performance
and allow for greater transparency with respect to key metrics used by management in operating our business
Our non-GAAP financial measures are adjusted for the following items:
We translated revenue for the three months ended March 31
2025 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S
which we believe is a useful metric that facilitates comparison to our historical performance
Purchases of property and equipment; Principal payments on finance leases
We subtract both purchases of property and equipment
and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business
regardless of whether we procure such property or equipment with a finance lease
We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business
Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures
see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
$ 6.59
$ 4.86
Weighted-average shares used to compute earnings per share:
$ 28,750
$ 43,889
$ 280,213
$ 276,054
$ 8,512
$ 7,687
Accrued expenses and other current liabilities
Common stock and additional paid-in capital
Total liabilities and stockholders' equity
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Adjustments to reconcile net income to net cash provided by operating activities:
Sales and maturities of marketable securities
Taxes paid related to net share settlement of equity awards
Payments for dividends and dividend equivalents
and restricted cash equivalents at beginning of the period
and restricted cash equivalents at end of the period
$ 30,071
$ 33,284
and restricted cash equivalents to the condensed consolidated balance sheets
$ 32,307
included in prepaid expenses and other current assets
$ 448
$ 630
We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL)
and mixed reality related consumer hardware
The following table presents our segment information of revenue and income (loss) from operations:
$ 41,392
$ 35,635
$ 42,314
$ 36,455
$ 21,765
$ 17,664
Total income from operations
$ 17,555
$ 13,818
Reconciliation of GAAP to Non-GAAP Results
Foreign exchange effect on 2025 revenue using 2024 rates
$ 43,551
Revenue excluding foreign exchange effect year-over-year change %
$ 41,392
$ 35,635
Foreign exchange effect on 2025 advertising revenue using 2024 rates
Advertising revenue excluding foreign exchange effect
$ 42,616
GAAP advertising revenue year-over-year change %
Advertising revenue excluding foreign exchange effect year-over-year change %
$ 24,026
$ 19,246
$ 10,334
$ 12,531
Meta today announced that Patrick Collison and Dina Powell McCormick have been elected to the company's board of directors
(NASDAQ: META) announced today that the company's first quarter 2025 financial results will be released after market close on..
Computer & Electronics
Social Media
Earnings
Earnings
Do not sell or share my personal information:
Kenrick Cai in San Francisco and Echo Wang in New York; Editing by Nia Williams and Christopher Cushing
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Kenrick Cai is a correspondent for Reuters based in San Francisco. He covers Google, its parent company Alphabet and artificial intelligence. Cai joined Reuters in 2024. He previously worked at Forbes magazine, where he was a staff writer covering venture capital and startups. He received a Best in Business award from the Society for Advancing Business Editing and Writing in 2023. He is a graduate of Duke University.
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Meta has woven AI into all of its social media and messaging apps
Chances are, you use at least one of Meta's biggest four social media and messaging apps daily, whether it's Facebook, Instagram, WhatsApp or Messenger. And if you do, then you've no doubt come across Meta AI
The tech giant has woven artificial intelligence into how you interact on these apps
including helping with posts and editing images
Here's what to know about the social network company's AI tools
Meta AI isn't the only player in the race to integrate AI into everyday life. Google has its own tools, like Google Assistant and Gemini, its free chatbot, akin to ChatGPT.
While Google's AI focuses more on productivity like search results or managing schedules
Meta AI is embedded into your social interactions
offering assistance without you having to ask
you can snap a photo and ask it to identify its details or edit the images with prompting.
Screenshot by CNETSimilarly, Amazon's Alexa and Apple's Siri are task-oriented assistants, and ChatGPT or Snapchat's My AI help with conversational experience
It's almost sneaky in how it seamlessly integrates into social platforms people use daily
By simply typing "@" followed by Meta AI
you can summon the assistant in chats (even group chats) to offer suggestions
This AI integration also extends to the search functions within Meta's apps
making it more intuitive and easier to find content and explore topics based on what you see in your feed -- what Meta calls a "contextual experience."
Meta AI is currently available in 21 countries outside of the US: Argentina
Meta AI is being integrated into everyday products like its Ray-Ban Meta glasses
These glasses can assist you in various ways
like remembering where you parked your car (woohoo!).
Starting this summer, you will be able to use the voice command, "Hey Meta
start live AI" to give Meta AI a live view of whatever you can see through your glasses
The glasses can also take actions based on what you're looking at
you can ask AI to make a call or scan a QR code for you
MetaYou'll also be able to use the voice command, "Hey Meta, start live translation" with your Meta Ray-Bans to automatically translate incoming languages
Meta's new AI app is now the primary way you can pair and manage your Ray-Ban smart glasses
Other products include the Meta Quest S3 version of their stand-alone virtual reality headset, which, after the upgrades, are called a mixed-reality headset, and Orion
which has been in the making for over a decade
Though Ray-Ban Meta glasses and Quest devices are available across 15 countries, including some European ones, Meta AI is currently available on those devices only in the US and Canada.
For now, this feature is available only in the US. Users and businesses will be able to create custom AI chatbots without needing extensive programming knowledge. These so-called AI characters will serve as extensions of themselves or their brands
enabling more engaging interactions with followers or customers
Screenshot by Barbara Pazur/CNETIn full transparency
all replies generated by AI will be marked as such
Llama (Large Language Model Meta AI) is a family of LLMs designed to understand and generate human-like text
Llama 3.3 is the latest version of this LLM
It's "an instruction-tuned model."
"Llama 3.3 is a text-only 70B instruction-tuned model that provides enhanced performance relative to Llama 3.1 70B – and relative to Llama 3.2 90B when used for text-only applications," Meta said in its release notes
The Llama 3.3 text-only model comes in a 70B parameter
and generates outputs by adjusting relationships between them
Meta also plans to release models with smaller parameters optimized for mobile devices and wearables like glasses.
You can't completely disable Meta AI across the social media giant's apps
but you can mute the chatbot if you find it annoying
Here's how to do it across the different apps
Tap the messaging icon in the top right corner
Tap the rainbow circle in the left side of the search bar
Meta / Screenshot by CNETTap the i in the top right corner:
Meta / Screenshot by CNETTap the Mute bell icon:
Meta / Screenshot by CNETToggle the Mute messages option on and choose how long you want to mute them for:
Meta / Screenshot by CNETSteps to mute the AI chatbot on WhatsAppLaunch the WhatsApp app
Meta / Screenshot by CNETTap on the Meta AI name at the top of the chat:
Meta / Screenshot by CNETTap Notifications:
Meta / Screenshot by CNETToggle the Mute notifications option on:
Meta / Screenshot by CNET Lastly
choose how long you want to mute notifications for:
Meta / Screenshot by CNETSteps to mute the AI chatbot on MessengerLaunch the Messenger app
Meta / Screenshot by CNETHit the i icon in the top right corner:
Meta / Screenshot by CNETThen choose how long you want to mute Meta AI notifications for:
Meta / Screenshot by CNETMeta AI: what's next?According to the company
Meta AI is set to become the world's most widely used AI assistant by the end of the year
Over 400 million people interact with Meta AI monthly
with 185 million using it across Meta's products each week.
And with a new app just for its AI offerings
Meta AI is likely to get used a whole lot more often
including Sarah Silverman and Ta-Nehisi Coates
will turn on the question of whether the company’s AI tools produce works that can cannibalize the authors’ book sales
an exception in US copyright law that allows for permissionless use of copyrighted work in certain cases
If Chhabria grants either motion, he’ll issue a ruling before the case goes to trial—and likely set an important precedent shaping how courts deal with generative AI copyright cases moving forward. Kadrey v. Meta is one of the dozens of lawsuits filed against AI companies that are winding through the US legal system
While the authors were heavily focused on the piracy element of the case
Chhabria spoke emphatically about his belief that the big question is whether Meta’s AI tools will hurt book sales and otherwise cause the authors to lose money
and you're saying that you don't even have to pay a license to that person to use their work to create the product that's destroying the market for their work—I just don't understand how that can be fair use,” he told Meta lawyer Kannon Shanmugam
(Shanmugam responded that the suggested effect was “just speculation.”)
Chhabria and Shanmugam went on to debate whether Taylor Swift would be harmed if her music was fed into an AI tool that then created billions of robotic knockoffs
Chhabria questioned how this would impact less-established songwriters
“What about the next Taylor Swift?” he asked
arguing that a “relatively unknown artist” whose work was ingested by Meta would likely have their career hampered if the model produced “a billion pop songs” in their style
it sounded like the case was the authors’ to lose
with Chhabria noting that Meta was “destined to fail” if the plaintiffs could prove that Meta’s tools created similar works that cratered how much money they could make from their work
But Chhabria also stressed that he was unconvinced the authors would be able to show the necessary evidence
Chhabria repeatedly asked whether the plaintiffs could actually substantiate accusations that Meta’s AI tools were likely to hurt their commercial prospects
“It seems like you’re asking me to speculate that the market for Sarah Silverman’s memoir will be affected,” he told Boies
“It’s not obvious to me that is the case.”
When defendants invoke the fair use doctrine
the burden of proof shifts to them to demonstrate that their use of copyrighted works is legal
Boies stressed this point during the hearing
but Chhabria remained skeptical that the authors’ legal team would be able to successfully argue that Meta could plausibly crater their sales
He also appeared lukewarm about whether Meta’s decision to download books from places like LibGen was as central to the fair use issue as the plaintiffs argued it was
is not whether something is messed up but whether it’s copyright infringement.”
A ruling in the Kadrey case could play a pivotal role in the outcomes of the ongoing legal battles over generative AI and copyright. Earlier this spring, a judge issued a partial summary judgment in the first AI copyright case
siding with the publishing conglomerate Thomson Reuters in its fight against AI startup Ross Intelligence
that case was an outlier in several ways—including the fact that it didn’t involve generative AI tools like large language models
Chhabria has acknowledged how consequential the case is and how his decisions from the bench could upend whole sectors of tech and culture
“I will issue a ruling later today,” Chhabria said at the hearing’s end
I will take a lot longer to think about it.”
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Meta Platforms (META) stock rallied Thursday as the social media giant's first-quarter results and sales outlook eased fears about tariffs squeezing its advertising business
Mark Zuckerberg also indicated its full-speed ahead for the Facebook parent company's significant AI investments
Meta said late Tuesday that it earned $6.43 per share on sales of $42.3 billion for the March-ended quarter
Analysts polled by FactSet projected the Menlo Park
Calif.-based company would post adjusted earnings of $5.23 per share on sales of $41.3 billion
Meta guided for $44 billion in sales for the June quarter
That was slightly ahead of analyst estimates for $43.8 billion in Q2 sales prior to the report
The sales guidance is helped by a 1% currency tailwind from a weakening dollar. Still, the outlook likely helps ease some concerns about how tariffs and the end of the de minimis import exemption for Chinese goods will hit Meta's advertising business
Chinese e-commerce companies Temu and Shein are beneficiaries of the de minimis exemption and also big advertisers on Facebook and Instagram
our community continues to grow and our business is performing very well," Zuckerberg
On the stock market today
Meta stock rose nearly 7% to 587.30 in recent premarket trading
Build Your Watchlist With Customized Stock Screens
Zuckerberg is not backing away from Meta's big spending on AI
Meta increased its guidance for capital expenditures in 2025 to $68 billion at the midpoint
The tech giant told investors in January that it planned to spend $62.5 billion on 2025 capex
The spending "reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware," the company said in its news release
Zuckerberg told analysts Wednesday that AI is "transforming everything we do." He added that the company is focused on utilizing AI to improve its ad business
grow messaging services for businesses and develop AI devices
we don't need to succeed in all of these areas to have a good ROI (return on investment)," Zuckerberg said on the conference call
then I think that we will be wildly happy with the investments that we are making."
the Facebook parent company lowered its expectations for total 2025 expenses to $115.5 billion
$1 billion lower than the midrange of its previous guidance
Meta was a 6% year-over-year increase in "daily active people," the metric the company uses to track total users of Facebook
Ad impressions delivered across Meta's apps increased 5% year-over-year while the average price per ad on Facebook and elsewhere increased 10%
That helped power a 16% revenue increase for Meta's "Family of Apps" business
Chief Financial Officer Susan Li told analysts Wednesday that the company's sales outlook for Q2 reflects ad trends that have "generally been healthy" so far in April
despite concerns tariffs will weigh down advertising
"We have seen some reduced spend in the U.S
which we believe is in anticipation of the de minimis exemption going away on May 2," Li said on the conference call
"A portion of that spend has been redirected to other markets
but overall spend for those advertisers is below the levels prior to April."
Meta shares had fallen 6.1% this year entering Thursday
compared to a 5.3% year-to-date slide for the S&P 500
Analysts expect the results will help push Meta higher
Oppenheimer analyst Jason Helfstein increased his price target for Meta stock to 665 and reiterated an outperform call
"Investors get the trifecta," Helfstein wrote to clients Wednesday
with Meta guiding to second quarter sales that were "meaningfully better than feared," decreasing fiscal year expenses by $1 billion and increased capex based on its AI outlook
Evercore ISI analyst Mark Mahaney upped his price target to 750 from 725 and reiterated an outperform call for Meta stock
"Meta is facing some dramatic macro uncertainties in (2025)
and the capex/investment pace is very aggressive
but the company is doing this from a clear position of strength," Mahaney wrote Wednesday
and excellent execution are all on display."
Coming into the report, Meta stock had an IBD Composite Rating of 86 out of 99, according to IBD Stock Checkup
The score combines five separate proprietary ratings into one rating
The best growth stocks have a Composite Rating of 90 or better
Meta Holds AI Conference With Q1 Earnings On Deck. Here's What To Watch.
When To Sell Growth Stocks: This Could Be Your No. 1 Rule
Get Timely Buy & Sell Alerts With IBD Leaderboard
IBD Live: Learn And Analyze Growth Stocks With The Pros
Reporting by Blake Brittain in Washington; Editing by David Bario and Deepa Babington
Meta. “Meta Reports First Quarter 2025 Results.”
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but upped its guidance on capital spending
delivered a strong earnings beat on Wednesday
and that’s likely easing investor concerns over big spending on artificial intelligence
whereas it previously was targeting $60 billion to $65 billion
Meta spent $39 billion on capital expenditures last year
Laila Maidan is a Tech and Investing reporter at MarketWatch
She covers the rapid developments in the sector along with actionable investment recommendations and deep dives into valuations
Wall Street remains bullish on the stocks of many tech giants
we will discuss the performance of three tech giants and pick the most attractive one
Apple stock has declined 18% so far in 2025. The iPhone maker exceeded analysts’ revenue and earnings expectations for the second quarter of Fiscal 2025
investors were disappointed as Apple’s Services revenue fell short of estimates
CEO Tim Cook said that it is very difficult to estimate the impact of tariffs beyond June because he is not “sure what will happen with tariffs.”
Apple expects tariffs to increase costs by $900 million
The company has been diversifying its manufacturing to reduce its reliance on China
Apple is already sourcing about 50% of its iPhones for the U.S
from India and most of its other products for the U.S
where tariffs are lower than those imposed on China
the company still makes the “vast majority” of its products for other countries in China
Morgan Stanley analyst Erik Woodring reaffirmed a Buy rating on AAPL stock with a price target of $235
The analyst stated that while Apple’s Q2 FY25 results and June quarter outlook were largely in line with estimates
he thinks that management’s underlying commentary was better than expected
Woodring highlighted the double-digit year-over-year growth in iPhone upgraders
flat (on constant currency basis) China revenue
Apple featuring in the top 2 selling smartphones in Urban China
and no demand or channel pull-forward in the March quarter
and none assumed in the June quarter outlook
Furthermore, Woodring highlighted that despite being over-indexed to China, Apple faces only $900 million of tariff costs in the June quarter
This indicates that the company’s South East Asia production diversification is working
he pointed out that management didn’t offer any segment-level guidance for the June quarter and didn’t commit to how much product would come from India/Vietnam in the September quarter and beyond
Overall, Wall Street has a Moderate Buy consensus rating on Apple stock based on 17 Buys, six Holds, and four Sells. The average AAPL stock price target of $229.95 indicates about 12% upside potential
See more AAPL analyst ratings
E-commerce and cloud computing giant Amazon reported better-than-expected results for the first quarter of 2025
revenue from the company’s AWS (Amazon Web Services) cloud business lagged expectations
AWS is the leading provider of cloud infrastructure and carries a higher margin than Amazon’s retail business
Further, the company issued soft guidance for the second quarter of 2025 amid pressures due to tariffs and trade policies and recessionary fears
Amazon’s retail business faces notable risk from tariffs
with many sellers on its third-party marketplace relying on China to make or assemble their products
most analysts remain optimistic about Amazon’s prospects due to its vast network and ability to continue to offer products at attractive prices by focusing on driving further efficiencies
They are also bullish on AWS due to AI-related tailwinds
Following the Q1 print, Bank of America Securities analyst Justin Post increased the price target for Amazon stock to $230 from $225, while reiterating a Buy rating. The 5-star analyst noted that the company has “material” 3P (third-party) seller revenue exposure to China and other imports, and that AWS lost some ground to Microsoft’s (MSFT) Azure in the first quarter
he highlighted that Amazon has shown good stability in 2025 so far
He thinks that AMZN stock is well-positioned to gain from any trade agreements over the next three months
He cautioned that Cloud growth could be lumpy
and AWS is not seeing the benefit of ChatGPT usage like Azure
Post pointed out that corporate spend remains steady
and AWS growth could likely accelerate in the second half of the year as capacity ramps up
With 48 Buys against one Hold recommendation, Amazon stock scores a Strong Buy consensus rating on TipRanks. The average AMZN stock price target of $241.76 implies 27.3% upside potential
AMZN stock has declined 13.4% year-to-date
See more AMZN analyst ratings
Social media giant Meta Platforms recently reported upbeat results for the first quarter of 2025 and offered Q2 outlook that met the Street’s expectations
The company’s daily active users reached 3.43 billion
exceeding analysts’ estimate of 3.39 billion
Meta’s ad revenue of $41.39 billion also surpassed expectations
However, the company cautioned that it is seeing some reduced ad spend from Asian e-commerce exporters. Meanwhile, Meta Platforms lowered its full-year total expenses outlook range but raised its capital expenditure guidance due to additional data center investments to support its AI initiatives and an increase in the expected cost of infrastructure hardware
Meta Platforms is confident about delivering strong performance despite ongoing macro challenges
JPMorgan analyst Doug Anmuth raised his price target for Meta Platforms stock to $675 from $610 and maintained a Buy rating
Anmuth noted that the company reported solid Q1 results and Q2 outlook and provided clarity on its AI roadmap
The 5-star analyst continues to believe that Meta Platforms is well-positioned for a challenging macro environment
and “vertical agnostic” inventory
Wall Street has a Strong Buy consensus rating on Meta Platforms stock based on 40 Buys, two Holds, and one Sell recommendation. The average META stock price target of $698.63 implies 17% upside potential
META stock has risen about 2% year-to-date
See more META analyst ratings
Wall Street is highly bullish on Amazon and Meta Platforms stock but cautiously optimistic on Apple
Analysts see higher upside potential in Amazon stock than in the stocks of the other two tech giants
analysts are optimistic about Amazon due to its dominant position in e-commerce and cloud computing
Disclaimer & DisclosureReport an Issue
Apple stock has declined 18% so far in 2025. The iPhone maker exceeded analysts’ revenue and earnings expectations for the second quarter of Fiscal 2025
Furthermore, Woodring highlighted that despite being over-indexed to China, Apple faces only $900 million of tariff costs in the June quarter
Overall, Wall Street has a Moderate Buy consensus rating on Apple stock based on 17 Buys, six Holds, and four Sells. The average AAPL stock price target of $229.95 indicates about 12% upside potential
See more AAPL analyst ratings
Further, the company issued soft guidance for the second quarter of 2025 amid pressures due to tariffs and trade policies and recessionary fears
Following the Q1 print, Bank of America Securities analyst Justin Post increased the price target for Amazon stock to $230 from $225, while reiterating a Buy rating. The 5-star analyst noted that the company has “material” 3P (third-party) seller revenue exposure to China and other imports, and that AWS lost some ground to Microsoft’s (MSFT) Azure in the first quarter
With 48 Buys against one Hold recommendation, Amazon stock scores a Strong Buy consensus rating on TipRanks. The average AMZN stock price target of $241.76 implies 27.3% upside potential
See more AMZN analyst ratings
Social media giant Meta Platforms recently reported upbeat results for the first quarter of 2025 and offered Q2 outlook that met the Street’s expectations
However, the company cautioned that it is seeing some reduced ad spend from Asian e-commerce exporters. Meanwhile, Meta Platforms lowered its full-year total expenses outlook range but raised its capital expenditure guidance due to additional data center investments to support its AI initiatives and an increase in the expected cost of infrastructure hardware
Wall Street has a Strong Buy consensus rating on Meta Platforms stock based on 40 Buys, two Holds, and one Sell recommendation. The average META stock price target of $698.63 implies 17% upside potential
See more META analyst ratings
Disclaimer & DisclosureReport an Issue
Despite tariff wars and macro pressures, Wall Street remains bullish on the stocks of many tech giants. Here, we will discuss the performance of three tech giants and pick the most attractive one, according to Wall Street analysts.
Facebook parent Meta Platforms (META) will publish first quarter earnings later today
Meta stock was trading slightly lower in morning trading
despite positive views from on AI-related announcement the company made at its first-ever LlamaConevent dedicated to generative artificial intelligence on Tuesday
Shares of the Magnificent Seven tech giant are still down overall for the year. Meta stock has reeled from the uncertainty surrounding President Donald Trump's tariffs policy and a trade war with China. Chinese e-commerce retailers are a major source of advertising revenue for Meta's Facebook and Instagram
"The ad business broadly is tied to economic growth and
given all the tariff issues and uncertainty
we should expect growth to slow for the next few quarters unless something meaningful changes on tariffs," Eric Clark
portfolio manager of the Rational Dynamic Brands Fund
told Investor's Business Daily in an email
That will put extra focus on how Chief Executive Mark Zuckerberg describes the current market for Meta and his vision this year for the trillion-dollar tech giant
The company's revenue guidance in particular could dictate how the market responds to Meta's report
analysts expect Meta to post Q1 earnings of $5.23 per share
Sales are projected to rise 13% to $41.3 billion
BofA Securities analyst Justin Post wrote Monday that Google's YouTube ad performance and checks with ad-buyers indicate the top-end of Meta's first quarter revenue guidance ($41.8 billion) is "achievable."
the timing of Trump's April 2 tariff announcement will likely mean that Meta's first quarter results are less in doubt
"Q1 was likely another solid quarter for Meta
because the impact of tariffs hadn't yet kicked in," said Debra Aho Williamson
as investment from China-based advertisers is likely to plunge."
Wall Street is likely to be more focused on Meta's revenue guidance for the current
The consensus estimates for analysts project Meta will guide for sales of $43.8 billion
"We expect some macro conservatism in the 2Q guide and expect an outlook at $40.5 billion to $44.0 billion," Post added in a client note
Post rates Meta stock a buy with a 640 price target
Meta has committed to spending between $60 billion and $65 billion in capital expenditures this year
"We don't expect Meta to pull back much on its capex initiatives given the importance of AI
but see ample leverage potential in Reality Labs where Meta spent roughly $20 billion in 2024 despite only generating $2 billion in revenue," wrote Jefferies analyst Brent Thill in a client note Monday
Reality Labs is the division focused on Meta's metaverse efforts
At its LlamaCon event Tuesday, Meta revealed a standalone app for its Meta AI chatbot
That could allow Meta to compete more directly with OpenAI's ChatGPT app
It will include a social to allow users to show friends how they are using AI.
one of its most important features is the ability to sync existing Meta accounts like Instagram and Facebook to the Meta AI app and allow access to years of data," William Blair analyst Ralph Shackart wrote in a client note Tuesday
Meta also launched an application programming interface (API) to allow developers to more easily integrate its Llama AI models into their products
saw the move as a "big step forward" for Meta monetizing its AI efforts
Llama was accessible to developers via APIs provided by cloud service providers like AWS (Amazon Web Services) and (Microsoft) Azure
with which Meta had revenue agreements," Thill wrote in a Tuesday client note
Meta positions itself to directly monetize Llama
marking its first foray into offering its own cloud infrastructure/platform for building and running Llama apps."
Meta stock has shed 5% year to date, compared with its 194% surge in 2023 and 65% gain last year. Meta has an IBD Composite Rating of 88 out of a best possible 99, according to IBD Stock Checkup
Analysts Cut Amazon Price Targets With First-Quarter Report Due Soon
Real-time quote and/or trade prices are not sourced from all markets
Ownership data provided by LSEG and Estimate data provided by FactSet
MarketSurge and other marks are trademarks owned by Investor's Business Daily
Meta. “Q1 2025 Earnings Call.”
Microsoft. “Microsoft Fiscal Year 2025 Third Quarter Earnings Conference Call."
Meta. “Introducing the Meta AI App: A New Way to Access Your AI Assistant.”
Meta Platforms. "Meta to Announce First Quarter 2025 Results."
Morgan Stanley. "Where to Turn Now? Consider Visibility vs Valuation."
the subscription service might not rake in meaningful revenue until next year at the earliest
is a virtual assistant that uses large language models to perform reasoning tasks.Reporting by Akash Sriram in Bengaluru; Editing by Shreya Biswas
AI has revolutionized the way people interact with technology and information
making it possible for people to automate complex tasks and gain valuable insights from vast amounts of data
the current state of AI processing — which relies on large language models often running on servers
rather than mobile hardware — requires that users’ requests are visible to the provider
it presents challenges in enabling people to use AI to process private messages while preserving the level of privacy afforded by end-to-end encryption
We set out to enable AI capabilities with the privacy that people have come to expect from WhatsApp
so that AI can deliver helpful capabilities
without Meta or WhatsApp having access to them
and in the way that meets the following principles:
We’re excited to share an initial overview of Private Processing
a new technology we’ve built to support people’s needs and aspirations to leverage AI in a secure and privacy-preserving way
This confidential computing infrastructure
built on top of a Trusted Execution Environment (TEE)
will make it possible for people to direct AI to process their requests — like summarizing unread WhatsApp threads or getting writing suggestions — in our secure and private cloud environment
Private Processing will allow users to leverage powerful AI features
while preserving WhatsApp’s core privacy promise
ensuring no one except you and the people you’re talking to can access or share your personal messages
To uphold this level of privacy and security
we designed Private Processing with the following foundational requirements:
However, we know that technology platforms like ours operate in a highly adversarial environment where threat actors continuously adapt, and software and hardware systems keep evolving, generating unknown risks. As part of our defense-in-depth approach and best practices for any security-critical system
we’re treating the following additional layers of requirements as core to Private Processing on WhatsApp:
Because we set out to meet these high-security requirements
our work to build Private Processing began with developing a threat model to help us identify potential attack vectors and vulnerabilities that could compromise the confidentiality
We’ve worked with our peers in the security community to audit the architecture and our implementation to help us continue to harden them
To help inform our industry’s progress in building private AI processing, and to enable independent security research in this area, we will be publishing components of Private Processing, expanding the scope of our Bug Bounty program to include Private Processing
and releasing a detailed security engineering design paper
as we get closer to the launch of Private Processing in the coming weeks
While AI-enabled processing of personal messages for summarization and writing suggestions at users’ direction is the first use case where Meta applies Private Processing
we expect there will be others where the same or similar infrastructure might be beneficial in processing user requests
We will continue to share our learnings and progress transparently and responsibly
Private Processing creates a secure cloud environment where AI models can analyze and process data without exposing it to unauthorized parties
it is important to develop a threat model to guide how we build its defenses
Our threat model for Private Processing includes three key components:
In the context of applying Private Processing to summarizing unread messages or providing writing suggestions at users’ direction
we will use Private Processing to protect messaging content
whether they have been received by the user
We use the term “messages” to refer to these primary assets in the context of this blog
secondary assets which help support the goal of Private Processing and may interact with or directly process assets: the Trusted Computing Base (TCB) of the Confidential Virtual Machine (CVM)
and the cryptographic keys used to protect data in transit
We have identified three threat actor types that could attack our system to attempt to recover assets
When building Private Processing to be resilient against these threat actors
we consider relevant threat scenarios that may be pursued against our systems
including (but not limited to) the following:
Anywhere the system processes untrusted data
there is potentially an attack surface for a threat actor to exploit
Examples of these kinds of attacks include exploitation of zero-day vulnerabilities or attacks unique to AI such as prompt injection
Private Processing is designed to reduce such an attack surface through limiting the exposed entry points to a small set of thoroughly reviewed components which are subject to regular assurance testing
The service binaries are hardened and run in a containerized environment to mitigate the risks of code execution and limit a compromised binary’s ability to exfiltrate data from within the CVM to an external party
Observability and debuggability remains a challenge in highly secure environments as they can be at odds with the goal of confidential computing
potentially exposing side channels to identify data and in the worst case accidentally leaking messages themselves
deploying any service at scale requires some level of observability to identify failure modes
since they may negatively impact many users
We implement a log-filtering system to limit export to only allowed log lines
Private Processing is built of components to form a complex supply chain of both hardware and software
our CVM build process occurs in restricted environments that maintain provenance and require multi-party review
which we’ll provide through publishing a third-party log of CVM binary digests and CVM binary images
will allow external researchers to analyze
and report instances where they believe logs could leak user data
TEE software exploitation is a growing area of security research
and vulnerability researchers have repeatedly demonstrated the ability to bypass TEE guarantees
physical attacks on Private Processing hosts may be used to defeat TEE guarantees or present compromised hosts as legitimate to an end user
we built Private Processing on the principle of defense-in-depth by actively tracking novel vulnerabilities in this space
minimizing and sanitizing untrusted inputs to the TEE
minimizing attack surface through CVM hardening and enabling abuse detection through enhanced host monitoring
Because we know that defending against physical access introduces significant complexity and attack surface even with industry-leading controls
we continuously pursue further attack surface hardening
we reduce these risks through measures like encrypted DRAM and standard physical security controls to protect our datacenters from bad actors
we seek to eliminate the viability of targeted attacks via routing sessions through a third-party OHTTP relay to prevent an attacker’s ability to route a specific user to a specific machine
Here is how we designed Private Processing to meet these foundational security and privacy requirements against the threat model we developed
(Further technical documentation and security research engagements updates are coming soon)
Data shared to Private Processing is processed in an environment which does not make it available to any other system
This protection is further upheld by encrypting data end-to-end between the client and the Private Processing application
or any third-party relay – can access the data
only limited service reliability logs are permitted to leave the boundaries of CVM
To prevent privileged runtime access to Private Processing
and implement security measures including code isolation
Code isolation ensures that only designated code in Private Processing has access to user data
Prohibited remote shell access ensures that neither the host nor a networked user can gain access to the CVM shell
We defend against potential source control and supply chain attacks by implementing established industry best practices
This includes building software exclusively from checked-in source code and artifacts
where any change requires multiple engineers to modify the build artifacts or build pipeline
This allows us to ensure that any potential issues are discovered — either through our continuous internal audits of code
or by external security researchers auditing our binaries
Private Processing utilizes CPU-based confidential virtualization technologies
which prevent certain classes of attacks from the host operating system
Private Processing utilizes CPU-based confidential virtualization technologies which allow attestation of software based in a hardware root of trust to guarantee the security of the system prior to each client-server connection
Private Processing checks these attestations
and confirms them against a third-party log of acceptable binaries
We operate Private Processing as a stateless service
which neither stores nor retains access to messages after the session has been completed
Private Processing does not store messages to disk or external storage
and thus does not maintain durable access to this data
requests to Private Processing only include data that is useful for processing the prompt — for example
message summarization will only include the messages the user directed AI to summarize
Private Processing implements the OHTTP protocol to establish a secure session with Meta routing layers
This ensures that Meta and WhatsApp do not know which user is connecting to what CVM
Meta and WhatsApp do not know the user that initiated a request to Private Processing while the request is in route
so that a specific user cannot be routed to any specific hardware
Private Processing uses anonymous credentials to authenticate users over OHTTP
Private Processing can authenticate users to the Private Processing system
Private Processing does not include any other identifiable information as part of the request during the establishment of a system session
We limit the impact of small-scale attacks by ensuring that they cannot be used to target the data of a specific user
To provide users visibility into the processing of their data and aid in validation of any client-side behaviors
we will provide capabilities to obtain an in-app log of requests made to Private Processing
and details of how that secure session was set up
we will make available the CVM image binary powering Private Processing
We will make these components available to researchers to allow independent
external verification of our implementation
to enable deeper bug bounty research in this area
we will publish source code for certain components of the system
including our attestation verification code or load bearing code
We will also be expanding the scope of our existing Bug Bounty program to cover Private Processing to enable further independent security research into Private Processing’s design and implementation
we will be publishing a detailed technical white paper on the security engineering design of Private Processing to provide further transparency into our security practices
and aid others in the industry in building similar systems
We’re deeply committed to providing our users with the best possible messaging experience while ensuring that only they and the people they’re talking to can access or share their personal messages
Private Processing is a critical component of this commitment
and we’re excited to make it available in the coming weeks
and the broader security community through our security research program:
Engineering at Meta is a technical news resource for engineers interested in how we solve large-scale technical challenges at Meta
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Senators Marsha Blackburn (R-TN) and Richard Blumenthal (D-CT) on Tuesday condemned Meta CEO Mark Zuckerberg for what they view as the prioritization of profits over children’s safety online.
In a letter issued to Zuckerberg on April 29, the lawmakers said they were “appalled” by an April 26 report published by The Wall Street Journal detailing how Meta’s AI-powered chatbots—available on Facebook
Instagram and WhatsApp—have on some occasions engaged in sexually explicit conversations with underage users.
“This is not merely an innocent oversight; it is a flagrant violation of the trust that parents and families place on your platforms,” Blackburn and Blumenthal wrote
“Despite repeated warnings and apparent internal concerns
Meta has once again prioritized profit over the safety and well-being of children.”
Internal communications at Meta suggest that staffers raised ethical concerns about the company’s decision to loosen chatbots’ safeguards
including by way of “endowing AI personas with the capacity for fantasy sex,” the Journal reported
the chatbots engaged with users under the voices and personas of celebrities or popular fictional characters.
Tech Leaders’ Quotes From the Contentious Child Safety Senate Hearing
Meta has downplayed the issue; a spokesperson told The Wall Street Journal: “The use-case of this product in the way described is so manufactured that it’s not just fringe
we’ve now taken additional measures to help ensure other individuals who want to spend hours manipulating our products into extreme use cases will have an even more difficult time of it.”
Despite Meta’s claims that sexually inappropriate behavior from its chatbots with underage users is unrepresentative
both official and user-created bots frequently enabled or escalated inappropriate content
After observing a sexual role-playing AI character titled “Submissive Schoolgirl”—which is available to all users more than 13 years old on Meta’s platforms—engaging in explicit conversations with a test user
the Journal flagged its observations to the tech company
Meta’s lax approach to regulating its AI chatbots is indicative of a larger
more problematic pattern; they wrote that it “underscores a disturbing trend: Meta consistently chooses growth and engagement metrics over the protection of its most vulnerable users.”
Both Blackburn and Blumenthal are sponsors of the bipartisan Kids Online Safety Act
a proposed law that would require social platforms to implement greater measures for shielding minors from potentially harmful material related to self-harm
The law would also enhance transparency into social platforms’ content algorithms.
“Meta’s repeated failures highlight the urgent need for this legislation,” Blackburn and Blumenthal wrote in their address to Zuckerberg
Now, Blackburn and Blumenthal are urging Zuckerberg to implement change—starting with the elimination of AI chatbots that are able to engage in sexual conversations with minors.
“We call on you to take immediate action to address these egregious lapses. Meta should immediately cease the deployment of AI chatbots that can engage in any form of sexual or romantic conversation with minors.”
The lawmakers also requested documentation outlining Meta’s internal decision-making process related to the development and governance of the AI chatbots by May 13.
The news comes in the midst of Meta’s LlamaCon AI event. On April 29, Meta announced the debut of a standalone ChatGPT competitor. Dubbed the Meta AI App, the platform has text, voice, and image capabilities.
Update 4/29 at 3:49pm E.T.: This story has been updated to include a statement from Meta.
Kendra Barnett is Adweek's senior tech reporter.
Adweek is the leading source of news and insight serving the brand marketing ecosystem.
compared with the 19.56 billion average for the full session over the last 20 trading days.Reporting by Chuck Mikolajczak
addiitonal reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by David Gregorio
Meta Founder and CEO Mark Zuckerberg speaks at LlamaCon 2025
Instagram and Facebook parent Meta Platforms Inc
posted better-than-expected results Wednesday for the first quarter thanks to strong advertising revenue — boosted by artificial intelligence tools — on its social media platforms
Meta’s stock climbed in extended trading after the results came out
but it was before the economic turmoil really kicked in and before the seesaw of the tariffs began,” said Sonata Insights chief analyst Debra Aho Williamson
“It was also before we started to see pullbacks in ad spending from China-based advertisers like Temu and Shein.”
Meta should be able to withstand any revenue shortfall from advertisers from China if it can continue to improve its AI-driven advertising tools
Revenue rose 16% to $42.31 billion from $36.46 billion a year earlier
were expecting earnings of $5.23 per share on revenue of $41.34 billion
Meta forecast revenue in the range of $42.5 billion to $45.5 billion
California-based company also raised its capital expenditures estimate for 2025 to $64 billion-$72 billion
up from its prior outlook of $60 billion-$65 billion
Meta said the new guidance “reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware.”
“We’ve had a strong start to an important year
our community continues to grow and our business is performing very well,” CEO Mark Zuckerberg said in a statement
“We’re making good progress on AI glasses and Meta AI
which now has almost 1 billion monthly actives.”
He said in a conference call with analysts that the company is in a good position to navigate the ongoing economic “uncertainty.”
Zacks Investment Research analyst Andrew Rocco said that while many companies have not been providing guidance amid tariff concerns and an uncertain economic environment
the fact that Meta did is a “bullish sign.”
A judge who may be the first to rule on whether AI training data is fair use appeared skeptical Thursday at a hearing where Meta faced off with book authors over the social media company's alleged copyright infringement
holds that training must be deemed fair use
or else the entire AI industry could face immense setbacks
wasting precious time negotiating data contracts while falling behind global rivals
Meta urged the court to rule that AI training is a transformative use that only references books to create an entirely new work that doesn't replicate authors' ideas or replace books in their markets
At the hearing that followed after both sides requested summary judgment, however, Judge Vince Chhabria pushed back on the Meta attorneys' argument that the company's Llama AI models posed no threat to authors in their markets, Reuters reported
"You have companies using copyright-protected material to create a product that is capable of producing an infinite number of competing products," Chhabria said
and you're saying that you don't even have to pay a license to that person."
Declaring, "I just don't understand how that can be fair use," the shrewd judge apparently stoked little response from Meta's attorney, Kannon Shanmugam, apart from a suggestion that any alleged threat to authors' livelihoods was "just speculation," Wired reported
which Chhabria warned could be "taken away by fair use" if none of the authors suing
can show "that the market for their actual copyrighted work is going to be dramatically affected."
to point to specific evidence of market harms that seemed noticeably missing from the record
"It seems like you're asking me to speculate that the market for Sarah Silverman's memoir will be affected by the billions of things that Llama will ultimately be capable of producing," Chhabria said
"And it's just not obvious to me that that's the case."
But if authors can prove fears of market harms are real
and that could set a precedent impacting copyright cases challenging AI training on other kinds of content
The judge repeatedly appeared to be sympathetic to authors
suggesting that Meta's AI training may be a "highly unusual case" where even though "the copying is for a highly transformative purpose
the copying has the high likelihood of leading to the flooding of the markets for the copyrighted works."
And when Shanmugam argued that copyright law doesn't shield authors from "protection from competition in the marketplace of ideas," Chhabria resisted the framing that authors weren’t potentially being robbed
"But if I'm going to steal things from the marketplace of ideas in order to develop my own ideas
"What about the next Taylor Swift?" If AI made it easy to knock off a young singer's sound
how could she ever compete if AI produced "a billion pop songs" in her style
Meta's spokesperson reiterated the company's defense that AI training is fair use
"Meta has developed transformational open source AI models that are powering incredible innovation
and creativity for individuals and companies," Meta's spokesperson said
"Fair use of copyrighted materials is vital to this
and the full record tells a different story
We will continue to vigorously defend ourselves and to protect the development of GenAI for the benefit of all."
The torrenting "seems kind of messed up," Chhabria said
is not whether something is messed up but whether it’s copyright infringement."
It's possible that Chhabria dodged the question for procedural reasons. In a court filing
Meta argued that authors had moved for summary judgment on Meta's alleged copying of their works
not on "unsubstantiated allegations that Meta distributed Plaintiffs’ works via torrent."
Meta alleged that even if Chhabria agreed that the authors' request for "summary judgment is warranted on the basis of Meta’s distribution
as well as Meta’s copying," that the authors "lack evidence to show that Meta distributed any of their works."
According to Meta, authors abandoned any claims that Meta's seeding of the torrented files served to distribute works, leaving only claims about Meta's leeching
Meta argued that the authors "admittedly lack evidence that Meta ever uploaded any of their works
during the so-called 'leeching' phase," relying instead on expert estimates based on how torrenting works
It's also possible that for Chhabria, the torrenting question seemed like an unnecessary distraction. Former Meta attorney Mark Lemley, who quit the case earlier this year, told Vanity Fair that the torrenting was "one of those things that sounds bad but actually shouldn’t matter at all in the law
Fair use is always about uses the plaintiff doesn’t approve of; that’s why there is a lawsuit."
Lemley suggested that court cases mulling fair use at this current moment should focus on the outputs
Citing the ruling in a case where Google Books scanning books to share excerpts was deemed fair use
Lemley argued that "all search engines crawl the full Internet
including plenty of pirated content," so there's seemingly no reason to stop AI crawling
But the Copyright Alliance, a nonprofit, non-partisan group supporting the authors in the case, in a court filing alleged that Meta
in its bid to get AI products viewed as transformative
"When describing the purpose of generative AI," Meta allegedly strives to convince the court to "isolate the 'training' process and ignore the output of generative AI," because that's seemingly the only way that Meta can convince the court that AI outputs serve "a manifestly different purpose from Plaintiffs’ books," the Copyright Alliance argued
"Meta’s motion ignores what comes after the initial 'training'—most notably the generation of output that serves the same purpose of the ingested works," the Copyright Alliance argued
Meta's AI models are apparently training on pirated works
Chhabria will not be making a snap decision in the case
planning to take his time and likely stressing not just Meta
but every AI company defending training as fair use the longer he delays
Understanding that the entire AI industry potentially has a stake in the ruling
Chhabria apparently sought to relieve some tension at the end of the hearing with a joke
“I will issue a ruling later today,” Chhabria said
Shares of Meta and Microsoft surged Thursday after earnings for two of the U.S.’ handful of trillion-dollar companies came in well above expectations
kicking off a crucial week for on-edge big technology stocks as tariffs complicated investor appetite for artificial intelligence-driven growth
and Microsoft CEO Satya Nadella will both address investors ..
Microsoft stock shot up 10% shortly after Thursday’s market open
Murphy saying “investors had become too pessimistic” on Microsoft heading into earnings
Meta stock gained about 7% to nearly $590 as both West Coast titans enjoyed a bump from Wednesday afternoon earnings reports
which far exceeded what analysts anticipated
Microsoft reported its best-ever quarterly revenue and profit totals
generating $70.1 billion in revenue and $3.46 EPS ($25.8 billion net income)
compared to consensus forecasts calling for $68.4 billion in revenue and $3.22 earnings per share ($24.1 billion net income) for Microsoft
scoring a 13% year-over-year increase in sales and 18% jump in profit
as its $42.3 billion in revenue and $6.43 EPS smashed forecasts of $41.4 billion in revenue and $5.23 EPS
and the company said it expects second-quarter revenue to come in between $42.5 billion and $45.5 billion
well above consensus projections of $41.3 billion
The tech-heavy Nasdaq Composite rose 2% on the back of the Meta and Microsoft surge
hitting its highest level since late March
That’s how much market capitalization Microsoft (about $280 billion) and Meta (about $100 billion) gained Thursday
Microsoft surpassed iPhone maker Apple as the world’s most valuable company following the earnings rally
“Meta has been busy playing dodgeball: The company is busy diving out of the way of changing advertiser behavior tied to tariffs and consumer spending
trying to duck emerging regulatory curveballs out of Europe and the US
and dodging margin compression by reigning in full year expenses,” Bernstein analysts Jenny Ku and Mark Shmulik wrote in a note to clients Thursday.“If you can dodge tariffs you can dodge a ball,” added the analysts
Meta and Microsoft shares had both slumped this year amid the broader stock market pullback as investors’ risk profile weakened
Meta and Microsoft stocks declined 5% year-to-date apiece through Wednesday
though that’s stronger than the 15% or more losses from Amazon
all of which have far heavier exposure to China than Meta and Microsoft
Thursday will be another magnificent seven earnings doubleheader, as retail titan Amazon and Apple will share quarterly results.
and Zuckerberg said product recommendations might be next
Meta’s AI app already includes a social feed
by Emma Roth
FacebookThreadsIllustration by Nick Barclay / The VergeEmma Roth is a news writer who covers the streaming wars
she was a writer and editor at MUO.The Meta AI app could soon get a paid tier
similar to the ones offered by rivals like OpenAI
Meta CEO Mark Zuckerberg described the plan during a Q1 2025 earnings call on Wednesday
saying there’s an opportunity to offer a “premium service for people who want to unlock more compute or additional functionality” in Meta AI
As part of Meta’s efforts to compete with ChatGPT, the company launched a standalone Meta AI app this week
allowing you to interact with the chatbot and generate images from within the app
which Meta says now has nearly 1 billion users
was previously only available within apps like Facebook
Additionally, Zuckerberg mentioned incorporating “product recommendations or ads” within Meta AI. It’s not clear when ads, or a paid tier, might roll out, as Zuckerberg said, “I expect that we’re going to be largely focused on scaling and deepening engagement for at least the next year before we’ll really be ready to start building out the business.”
The Coalition for a Competitive Mobile Experience argues age verification should be the app stores’ problem to solve
by Dominic Preston
FacebookThreadsImage: Cath Virginia / The VergeDominic Preston is a news editor with over a decade’s experience in journalism
He previously worked at Android Police and Tech Advisor.Meta has joined forces with Spotify
and others to form a lobby group to represent their interests
especially as they come into conflict with those of Apple and Google
The group’s first order of business is arguing that age verification should be the responsibility of app stores
“What these founding companies share in common is they rely on the mobile ecosystem in order to serve their customers,” Brandon Kressin
“They each recognize there’s power in numbers
especially when going up against companies as powerful as the duopoly.”
Right now, the group’s priority is joining Meta’s ongoing efforts to persuade lawmakers that app stores should bear the responsibility for controlling which apps children can download, saving the apps themselves from the brunt of age verification. Google, for its part, says Meta is trying to “offload” its responsibility to keep kids safe
Utah has already passed a law requiring app stores to verify user ages
and the new coalition intends to support similar bills in other states
and efforts to introduce equivalents in the House and Senate
The new coalition announced itself just hours before Apple suffered a major defeat in its ongoing litigation against Epic. The judge ruled that Apple is no longer allowed to collect fees on purchases made outside apps or restrict how developers can direct users to other payment options.
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The company has removed the option to disable your voice recordings from being stored
by Chris Welch
FacebookThreadsPhoto by Amelia Holowaty Krales / The VergeChris Welch is a senior reviewer who has worked at The Verge since its founding in 2011
and more.Meta is making a few notable adjustments to the privacy policy for its Ray-Ban Meta smart glasses
In an email sent out on April 29th to owners of the glasses
“Meta AI with camera use is always enabled on your glasses unless you turn off ‘Hey Meta,” the email said; the latter refers to the hands-free voice command functionality
spokesperson Albert Aydin tells The Verge “the photos and videos captured on Ray-Ban Meta are on your phone’s camera roll and not used by Meta for training
including photos or videos captured by using the ‘Hey Meta
If you share those photos to a product — for example
cloud services or a third-party product — then the policies of that product will apply.“
Second, Meta is taking after Amazon by no longer allowing Ray-Ban Meta owners to opt out of having their voice recordings stored in the cloud. “The option to disable voice recordings storage is no longer available, but you can delete recordings anytime in settings,” the company wrote. In its voice privacy notice
Meta states that “voice transcripts and stored audio recordings are otherwise stored for up to one year to help improve Meta’s products.” If the company detects that a voice interaction was accidental
those recordings are deleted after a shorter 90-day window
The motivation behind these changes is clear: Meta wants to continue providing its AI models with heaps of data on which to train and improve subsequent results. Some users began noticing these policy changes in March
Meta says they went into effect as of April 29th
Earlier this month, the company rolled out a live translation feature to the Ray-Ban Meta product. And just yesterday, Meta rolled out a standalone Meta AI app on smartphones to more directly compete with Open AI’s ChatGPT
The company is reportedly planning a higher-end pair of Ray-Ban Meta glasses for release later in 2025. The current glasses lineup starts at $299, but the more premium version could cost around $1,000. Meta is set to report its Q1 2025 earnings later on Wednesday, and the company is likely to address the tariff chaos that has roiled markets in recent months.
Update April 30th, 6:00PM ET: The article has been updated to clarify details and with a statement from Meta.