Five $META Takeaways:
1. The AI hardware trade remains intact. When discussing DeepSeek, he emphasized that the path to AI success involves heavily investing in infrastructure and CapEx to deliver quality products at scale. $NVDA would have been up if not for disappointing Azure guidance, which had little to do with Nvidia.

2. AI is driving revenue growth. Adoption within their own business continues to be strong, fueling growth and investment. Now, 4 million advertisers are using generative AI tools, up from 1 million six months ago. AI is benefiting their business, and the advancements and investments are becoming evident as they take a thoughtful approach.

3. AI is enhancing margins. They aim to improve margins by developing an AI agent capable of coding at a mid-level engineering standard. He mentioned that this would make existing engineers more productive. In theory, hiring slightly more people could lead to significantly higher output.

4. Zuckerberg hinted at a decision regarding Reality Labs in 2025. His opening remarks suggested that the future of Reality Labs depends on how well smart glasses sell this year.

5. Meta’s products remain highly addictive. Family Daily Active People (DAP) reached 3.35 billion, up 5% year-over-year—consistent with a 5% increase in September 2024 and a 7% increase in June 2024.
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