Meta misses profit expectations, sticks to massive AI spending

San Francisco: Facebook-parent Meta reported profits on Wednesday that fell short of Wall Street expectations, as the cost of staying in the race to deploy artificial intelligence — along with hefty legal and severance charges — hurt its bottom line.

The social media giant said net income dropped 14% from a year earlier to $15.8 billion.

Revenue, however, climbed 28% to $60.8 billion, beating estimates and underscoring the continued strength of its advertising business.