Bloomberg Intelligence Meta Seizes Its Moment to Spend Aggressively in the AI Race
Jul 31, 2025
Meta Platforms is ramping up spending to capitalize on AI advancements, with implications for user engagement and revenue growth. In healthcare, Eli Lilly’s diabetes drug Monjaro faces challenges compared to its predecessor, raising questions about its market impact. The semiconductor sector is also feeling the pinch as Qualcomm reports disappointing earnings amid tariff concerns. Meanwhile, Comcast struggles with subscriber losses but shows resilience, adjusting strategies to stay competitive in the broadband market.
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Meta's AI and Ad Synergy
- Meta has been building AI models for over a decade, primarily for internal use to improve ad targeting and content recommendations.
- Their strong ad business funds aggressive AI investments, which investors currently view positively.
Meta's AI Advantage: Built-in Audience
- Mark Zuckerberg's control over Meta and reach through platforms like Facebook, Instagram, and WhatsApp create a powerful AI audience.
- Meta AI benefits from immediate access to over a billion users, unlike competitors who must build audiences.
WhatsApp Monetization Begins Slowly
- Meta is starting to monetize WhatsApp with ads, but impact on revenue will be slow and gradual.
- Monetization challenges include strong user bases in less lucrative regions and competing against Facebook and Instagram advertising.