Meta reported fourth-quarter revenue of $59.9 billion, up 24 percent year-over-year, driven by AI-powered improvements to its ad ranking and attribution systems. Engagement metrics were robust: Reels watch time increased by more than 30 percent and total ad impressions across Facebook, Instagram and Threads rose 18 percent. These volume gains, coupled with better targeting, allowed Meta to lift average ad pricing by 6 percent and record double-digit growth in both clicks and conversion rates. Management reiterated full-year guidance for mid-20 percent revenue growth, citing ongoing efficiency gains in its AI ad engine and a strong pipeline of augmented-reality hardware investments scheduled to roll out later this year.

Bloomberg reports that the US Department of Commerce has investigated allegations that Meta can access end-to-end encrypted WhatsApp messages—a claim Meta calls “categorically false and absurd.” The inquiry follows a lawsuit filed by Quinn Emanuel Urquhart & Sullivan, which alleges unnamed whistleblowers from five countries assert that WhatsApp chats are decrypted on Meta servers. In response, Meta has pursued sanctions against the law firm for filing what it deems a meritless action designed to defend the NSO Group, creator of Pegasus spyware. Security experts note that any breach of end-to-end encryption would almost certainly have leaked internally, and the Commerce Department spokesman has labeled the report unsubstantiated.