Meta Platforms has appointed Dina Powell McCormick, a former executive from Goldman Sachs, as its new president and vice-chairman. This strategic decision aims to enhance the company's long-term initiatives in artificial intelligence, including the establishment of capital partnerships and financing for data centers.
The company is adjusting its focus by reallocating resources from Reality Labs, which has heavily invested in the metaverse, toward AI-driven wearables and smart glasses. This shift signifies Meta's commitment to prioritizing artificial intelligence as its central technology.
Investors are observing how Meta’s extensive investments in AI infrastructure and clean energy, including notable 20-year power purchase agreements with Vistra, influence its investment narrative. Analysts express caution regarding the potential for rising capital expenditures to outpace revenue growth, which could impact free cash flow.
Looking ahead, Meta anticipates a revenue of $275.9 billion and earnings of $92.1 billion by 2028. To reach these targets, the firm must sustain a yearly revenue growth rate of 15.6% and significantly increase its earnings from the current $71.5 billion.