"Meta remains a digital advertising juggernaut. Its ad revenue soared 24% year over year in Q4 to $58.1 billion. And AI is transforming the company's core ad business, boosting revenue and profits. In Q4, Meta changed the architecture of the GEM model it uses for ad ranking and doubled the number of GPUs used to train the AI model. The results were impressive: a 3.5% increase in ad clicks on Facebook, with a 1%+ increase in ad conversions on Instagram."
"The speed of software development is critical to Meta's growth story. Thanks to agentic coding -- the use of agentic AI to write, test, and debug software with minimal human intervention -- the company's output per engineer has jumped 30% since the beginning of 2025. Meta's productivity improvement is even more impressive with power users, with AI coding tools increasing their output by a staggering 80% year over year."
Meta's ad revenue grew 24% year over year in Q4 to $58.1 billion. AI-driven improvements to ad ranking, including changes to the GEM model architecture and doubling GPUs for training, produced a 3.5% lift in Facebook ad clicks and over a 1% rise in Instagram ad conversions, with additional performance gains expected. Agentic coding increased output per engineer by 30% since early 2025 and boosted power users' output by 80% year over year. Growth is expected to accelerate through the next half of 2026. Sales of AI-powered smart glasses more than tripled in 2025, suggesting smartphone-like adoption potential. These AI-driven advertising, productivity, and device trends collectively strengthen Meta's investment case in early 2026.
Read at The Motley Fool
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