VERIFIEDBy Xavier Rivera· ·1 min read
Meta's Daily Users Drop 20 Million Amid AI Spend Surge
Meta discloses a 20 million drop in daily active users across its platforms while boosting 2026 capex by $10 billion to $125-145 billion for AI. Revenue surges 33 percent despite Reality Labs losses and layoffs.
Source:The Verge
TL;DRAI · 60 sec read
Meta reports a decline of 20 million in "Family daily active people" — its metric for collective daily users across Facebook, Instagram, WhatsApp, and Messenger — this quarter compared to the previous three months. The company attributes the fall to "internet disruptions in Iran, as well as a restriction on access to WhatsApp in Russia," according to its earnings call on Wednesday.
Meta increases its projected capital expenditures for 2026 to a range of $125-145 billion, $10 billion more than previous estimates. The Verge cites higher component pricing and additional costs for future data center capacity as drivers. Meta CFO Susan Li states the company had "underestimated our compute demand in the past."
Revenue grows 33 percent to $56.3 billion this quarter from $42.3 billion a year ago, marking the fastest growth since 2021.
Meta's Reality Labs unit, which builds wearables and VR devices, posts an operating loss of $4.03 billion for the quarter. Employees in the unit face two waves of layoffs since January.
Meta's stock price falls more than 7 percent following the earnings release.
Meta increases its projected capital expenditures for 2026 to a range of $125-145 billion, $10 billion more than previous estimates. The Verge cites higher component pricing and additional costs for future data center capacity as drivers. Meta CFO Susan Li states the company had "underestimated our compute demand in the past."
Revenue grows 33 percent to $56.3 billion this quarter from $42.3 billion a year ago, marking the fastest growth since 2021.
Meta's Reality Labs unit, which builds wearables and VR devices, posts an operating loss of $4.03 billion for the quarter. Employees in the unit face two waves of layoffs since January.
Meta's stock price falls more than 7 percent following the earnings release.
HELP US IMPROVE
Reader-supported
The Circuitry is a passion project I've always wanted to build, and I love the work behind it.
Running it costs real money. APIs, hosting, time. To keep improving the site and growing this into something useful for everyone, those costs have to be covered.
Any contribution is appreciated. If not, no pressure. Thanks for reading.