META'S AI PUSH WORKS, BUT WALL STREET ISN'T CONVINCED

Summary from the TLDR Founders newsletter

Meta's stock dropped 8% after earnings, even though its AI improvements are clearly working. People spend 10% more time on Instagram because of better AI recommendations, and advertisers using Meta's AI tools pay 14% less per lead. The company now makes $60 billion from AI-powered ads. The problem is expenses - they jumped 32% as Zuckerberg pours money into AI research labs faster than revenue is growing. Meta grew revenue 26% and engagement is up across every app, but investors think it is spending too aggressively on AI when the current tools already deliver results.