Ed Ludlow

Is that a data point that you look at and say, okay, I believe you that this is worth it because internally you're doing better as well?

Yeah, absolutely.

One of the metrics that we do track is headcount growth.

And so what we are seeing is and what we expect is headcount growth to moderate growing forward, even though it will be in the positive territory, but more moderate, as well as compensation skew to shift more towards engineering and higher compensated employees.

In return, what we expect to see is perhaps greater level of productivity or shipments of products and new features that we think will then drive further ROI for advertisers and in exchange drive impressions growth, engagement growth, and then monetization.

That's how we see this play out.

What a difference the quarter makes and how much we beat up over CapEx last time.

And this time we see the optimism and the driving forward, the promise of AI that understands us personally is how Mark Zuckerberg was talking about it.

But how crucial is therefore the next iteration of their large language model?

How important is Avocado, what the code name is and what they're building, that it lands unlike LamaFall?

Well, it is incredibly important.

Going into the print, that was one of the key concerns for Meta that we haven't heard or seen a model yet when Gemini and arguably GPT-5 as well as Cloud's models are way ahead.

The expectation, however, is not for Meta's next model to really break the top three in the LM Arena rankings.

It's more about...

Meta's models to be in the ranking of in conversation of being a competitive model.

If that happens, then that is a sign that they are on a good trajectory for upcoming updates to frontier models that they can leverage then for better impressions or monetization.

And that should be enough to give investors some comfort.

Shweta, what excites you the most?

Is it the commerce applications, the ways in which we're going to find it easier and easier to purchase using their own AI offerings?

Or is it actually that we're purchasing hardware through them?