Meta shares jump as AI fuels ad sales, outweighing big capital costs


FILE PHOTO: Meta logo is seen in this illustration created on August 22, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Meta Platforms forecast third-quarter revenue well above analysts' estimates on Wednesday, as artificial intelligence once more powered its core advertising business, sending its shares soaring 11% in extended trading.

The bumper results could ease investor worries about the social media giant's frenzied pace of spending, at least for now, as it seeks to change Wall Street's impression that it lags rivals including Microsoft and Alphabet's Google in the AI race.

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