Category: 3. Business

Last week, you might have seen that Cameco Corporation (TSE:CCO) released its third-quarter result to the market. The early response was not positive, with shares down 9.7% to CA$129 in the past week. Cameco’s revenues suffered a miss, falling 18% short of forecasts, at CA$615m. Statutory earnings per share (EPS) however performed much better, reaching break-even. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the 14 analysts covering Cameco are now predicting revenues of CA$3.71b in 2026. If met, this would reflect a modest 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 79% to CA$2.16. Before this earnings report, the analysts had been forecasting revenues of CA$3.72b and earnings per share (EPS) of CA$2.38 in 2026. So it looks like there’s been a small decline in overall sentiment after the recent results – there’s been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Cameco

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$146, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cameco analyst has a price target of CA$175 per share, while the most pessimistic values it at CA$100.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cameco shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It’s pretty clear that there is an expectation that Cameco’s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.6% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% per year. Even after the forecast slowdown in growth, it seems obvious that Cameco is also expected to grow faster than the wider industry.

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cameco. Fortunately, they also reconfirmed their revenue numbers, suggesting that it’s tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple Cameco analysts – going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we’ve discovered 1 warning sign for Cameco that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Mentions of artificial intelligence (AI) have surged on earnings calls, yet only a small fraction of firms have applied it in ways that have meaningfully affected their business. A 2025 multi-method study from MIT NANDA (Networked Agents and Decentralized AI) found that just 5% of organizations report measurable ROI from their investment in generative AI. While the study may not represent all organizations and industries, it reveals that enthusiasm for AI does not always guarantee business value.

Gallup’s own research finds a similar conclusion. Even as the availability of AI technologies has accelerated in the past two years, access does not necessarily lead to AI adoption among employees or a return on investment. Bottlenecks often stem from unclear localized use cases and resistance from middle managers and frontline employees. “The irony of labour-saving automation,” writes The Economist, “is that people often stand in the way.”

Gallup’s research on AI adoption suggests that managers who actively encourage AI use not only generate higher AI adoption but also help their teams identify applications that fit existing workflows and solve real problems, creating greater value from AI tools. Within organizations that are investing in AI technology, employees who strongly agree their manager supports AI use are nearly nine times as likely to strongly agree that it helps them do what they do best every day.

What Prevents AI Adoption? The Top Barriers

Even in organizations that have begun implementing AI, many employees are unsure how it fits into their work. When asked to identify the greatest barrier to AI adoption in their workplace, the top response was an unclear use case or value proposition (16%). AI adoption challenges like this may reflect situations where an AI’s utility is immediately unclear but also concerns about whether AI can evolve or integrate with existing processes or tools. Concerns about legal or privacy risks ranked a close second at 15%, followed by a lack of training or necessary knowledge (11%).

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Many Employees Still See AI as Irrelevant to Their Work

Input from those who do not use AI in their role reinforces that showing the job-specific value and benefits of AI use is fundamental to adoption. Nearly half (44%) of these employees say the main reason they do not use AI tools in their role is that they don’t believe AI can assist with the work they do.

Just 16% percent of non-users say they don’t use AI primarily because they do not have access to AI tools at their organization. Others cite resistance to change in the way they do their job (11%), lack of knowledge of how to use AI tools (10%), feeling unsafe using AI tools (8%), or some other reason (10%). These data underscore that real AI adoption and value depend on addressing the barriers employees face when using AI tools and showing how those tools can improve their work.

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What Makes a Difference in the Adoption of AI

The top barriers to AI adoption in business present real challenges, but leaders can address them with targeted strategies. Gallup identified four AI adoption best practices associated with higher AI usage and stronger evaluations of its benefits among employees:

1. Communicate a clear strategy for AI integration. Employees are more likely to engage with AI when they see that their organization has a defined approach, understands AI risks and concerns, and is prepared to address them. This signals that AI adoption is intentional and connected to broader business goals.
2. Champion AI use at the team level. Managers play a vital leadership role in translating the AI adoption strategy into action. By actively supporting AI use, modeling its application, and connecting it to the work employees actually do, managers make organizational plans relevant and practical.
3. Provide role-specific training that maximizes value and mitigates risk. Organizations should design training based on employees’ actual tasks and include guidance for secure use. This builds skill and confidence in using AI effectively.
4. Establish clear policies and guidelines for responsible use. Well-defined, accessible policies and guidelines give employees the confidence to explore AI’s potential while staying within organizational, legal, and ethical boundaries. Strong policies also address safety concerns that often deter adoption.

When combined, these AI adoption strategies help employees see AI’s value in the context of their own role and build the confidence to use it regularly. They also position managers to deliver the ongoing guidance and encouragement that turn access into sustained application.

Managers Lead the Way to AI Adoption

Because of their day-to-day connection with employees, managers are uniquely positioned to champion AI by modeling its use, answering questions and showing how it connects to employees’ daily work. Gallup data show that manager support has the strongest association with measurable differences in how employees use and value AI. Within organizations that are investing in AI technology, employees who strongly agree their manager actively supports their team’s use of AI are:

• 2.1 times as likely to use AI a few times a week or more
• 6.5 times as likely to strongly agree that the AI tools provided by their organization are useful for their work
• 8.8 times as likely to strongly agree that AI gives them more opportunities to do what they do best every day

Despite these clear benefits, many employees report a lack of active support from their managers when it comes to using AI. Only 28% of employees in organizations that have begun implementing AI technologies strongly agree their manager actively supports their team’s use of the technology, leaving significant room for improvement. This adoption gap continues to hold down overall AI adoption rates.

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Turn AI Access Into Results

The potential of AI in the workplace remains for many organizations, but its value depends on more than availability. Adoption and results are most likely when employees clearly understand how they can apply AI to their work and see its relevance to what they do. Managers play a central role in illustrating this relevance, guiding their teams in using AI effectively and making it a meaningful factor in performance.

Learn more about how the Gallup Panel works. View complete question responses and trends (PDF download).

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What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we’ll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it’s a business that is reinvesting profits at increasing rates of return. So on that note, JD.com (NASDAQ:JD) looks quite promising in regards to its trends of return on capital.

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For those who don’t know, ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for JD.com:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.08 = CN¥31b ÷ (CN¥707b – CN¥323b) (Based on the trailing twelve months to June 2025).

Thus, JD.com has an ROCE of 8.0%. Ultimately, that’s a low return and it under-performs the Multiline Retail industry average of 11%.

See our latest analysis for JD.com

In the above chart we have measured JD.com’s prior ROCE against its prior performance, but the future is arguably more important. If you’re interested, you can view the analysts predictions in our free analyst report for JD.com .

While in absolute terms it isn’t a high ROCE, it’s promising to see that it has been moving in the right direction. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 8.0%. The company is effectively making more money per dollar of capital used, and it’s worth noting that the amount of capital has increased too, by 113%. So we’re very much inspired by what we’re seeing at JD.com thanks to its ability to profitably reinvest capital.

On a side note, JD.com’s current liabilities are still rather high at 46% of total assets. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we’d like to see this reduce as that would mean fewer obligations bearing risks.

To sum it up, JD.com has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Given the stock has declined 62% in the last five years, this could be a good investment if the valuation and other metrics are also appealing. With that in mind, we believe the promising trends warrant this stock for further investigation.

If you want to know some of the risks facing JD.com we’ve found 2 warning signs (1 is significant!) that you should be aware of before investing here.

While JD.com may not currently earn the highest returns, we’ve compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

What’s the future of the internet going to look like?

Alexis Ohanian, one of the cofounders of Reddit, thinks there’s an opportunity for a new generation of apps to shake up how we’re connecting online.

“The most potent form of social today is basically in group chats, which is obviously not new technology, but what it’s highlighting is the fact that that’s a trusted group of people who you actually know, who are verifiably human,” Ohanian told Business Insider in a recent interview. “This next wave of apps — Airbuds is a great example — is going to be about that.”

Airbuds, a social music app gaining traction with teens, recently announced that Ohanian’s venture capital firm, Seven Seven Six, led its latest $5 million investment round.

How younger generations are using social apps is “one of the best bellwethers” for understanding internet trends, Ohanian said.

“This generation coming up has learned, and has a preference for, a less gamified version of life,” he said, opting out of the chase for followers or likes. “They’re choosing a healthier type of paradigm for social.”

Earlier this year, Ohanian also revived the social network Digg with its original founder, Kevin Rose.

It’s not just younger users who are yearning for a new social media experience, Ohanian said.

“Everyone, especially if you’re a geriatric millennial like me, you’re kind of tapped out,” Ohanian said. “You’re looking for that next wave. There’s a real hunger there.”

The next wave of social companies

Some new social media startups are challenging the attention economy with technology designed to get us out into the real world. Others are building platforms that evoke nostalgia for older versions of the internet, or are focused on connecting people with their closest friends rather than millions of people.

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“We just have a chance to do it better, to build more thoughtfully, and to really build something that ultimately has us feeling better when we get off of it,” Ohanian said.

In an era when artificial intelligence is infiltrating nearly every social media feed — yes, I’m talking about AI slop — true human connection online is starting to feel more scarce.

It’s why some tech executives like Ohanian and even OpenAI’s Sam Altman are talking about the “dead internet theory,” which attempts to explain what would happen in a scenario in which the internet is more AI than human.

“I think you are seeing increased value in these more closed networks,” Ohanian said. “I’m not saying we’re going back to AOL walled internet garden, but my hunch is it’s going to be less about how do you get to growth and billions of users … and more about: How do you really build a tool that allows communities to emerge and drive tremendous engagement?”

New internet companies will be able to monetize this experience, too, he added.

“It’s not about needing to get to billions of users and just selling them ads,” Ohanian said. “There’s going to be much more creative and constructive ways to monetize that’s sustainable, and hopefully actually ends up aligning the goals of the userbase with the goals of the platform, which is something that we’ve seen at odds in all the predecessors.”

• Concentra Group Holdings Parent, Inc. recently reported strong third-quarter results, boosting its full-year 2025 guidance to US$2.15 billion to US$2.16 billion in revenue and US$156 million to US$161 million in net income, while also declaring a US$0.0625 per share cash dividend and announcing a US$100 million share repurchase program payable in December.

• The company’s accelerated growth stems from its successful integration of acquired health centers and continued expansion in occupational health services, highlighting its commitment to operational improvement and capital returns.

• Let’s explore how Concentra’s raised guidance and capital return initiatives could shape expectations for its long-term operational and financial trajectory.

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To be a Concentra Group Holdings Parent shareholder, you need conviction in the company’s ability to accelerate growth through clinic expansion, integrate acquisitions, and deliver both operational efficiencies and reliable capital returns like dividends and buybacks. The recently raised 2025 guidance, anchored by revenue gains from new acquisitions, may reinforce expectations for near-term delivery, but it does not fundamentally alter high-priority, short-term catalysts around successful integration and margin expansion; the biggest risk, persistent elevated debt, remains material for now.

Among recent announcements, the US$100 million share repurchase authorization stands out in this context, as it signals management’s confidence in future cash flow and operational discipline even while balance sheet leverage stays high. This measure, in addition to regular dividends, underscores the company’s effort to deliver value to shareholders, but the tension with ongoing debt reduction priorities keeps financial risks in focus.

However, investors should also be aware that high leverage continues to limit flexibility even as Concentra’s buyback and dividend programs grow, which could become…

Read the full narrative on Concentra Group Holdings Parent (it’s free!)

Concentra Group Holdings Parent is projected to reach $2.6 billion in revenue and $249.0 million in earnings by 2028. This outlook assumes an annual revenue growth rate of 8.4% and a $100.9 million increase in earnings from the current level of $148.1 million.

Uncover how Concentra Group Holdings Parent’s forecasts yield a $28.12 fair value, a 45% upside to its current price.

Two Simply Wall St Community fair value estimates for Concentra Group Holdings Parent range from US$15.13 to US$28.13, reflecting a wide spectrum of individual investor outlooks. While these views vary, the company’s continued expansion through acquisitions remains a focal point shaping expectations for future profitability and risk, inviting readers to consider contrasting perspectives.

Explore 2 other fair value estimates on Concentra Group Holdings Parent – why the stock might be worth as much as 45% more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Markets shift fast. These stocks won’t stay hidden for long. Get the list while it matters:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CON.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

CANDIOTA, Brazil, Nov 8 (Reuters) – One of Brazil’s last coal plants roared back to life in July after a powerful business group invested millions to keep its turbines turning in the southern mining town of Candiota.

The plant’s owner Ambar, controlled by billionaire brothers Wesley and Joesley Batista, is betting that even Brazil, where cheap renewable energy sources produce over 80% of electricity, would not soon stop burning coal, a major driver of global warming.

Sign up here.

Brazil, as host of the United Nations climate summit COP30 this month, is urging nations to transition away from fossil fuels. President Luiz Inacio Lula da Silva lamented at a leaders summit in the Amazonian city of Belem this week that the war in Ukraine had led to the reopening of coal mines.

Yet Candiota and five other coal plants still produce 3% of Brazil’s electricity, illustrating how pressure from interest groups and lack of a transition plan can keep coal burning, even in a renewable energy powerhouse.

“Brazil absolutely has the potential, with all the solar resources in addition to the hydro and the wind, that it could basically close these coal plants down,” said Christine Shearer, who monitors coal for the think tank Global Energy Monitor.

“The strength of the coal lobby, particularly in these coal mining states, is the reason that you see these coal plants sticking around,” she said.

The Candiota plant’s government contract expired last year, leading local businesses to shut down and many residents to leave town. The plant now sells energy on the spot market, helping to meet demand at peak hours when solar and wind generation fades.

Brazil’s Congress and federal government also have thrown a lifeline to coal plants. Last month, lawmakers approved a bill granting contracts until 2040 for plants run on domestic coal, such as Candiota. Lula could still veto it.

NEW AUCTION OPEN TO COAL

The Brazilian government also made coal eligible for a planned capacity auction in March, aiming to boost energy security by contracting thermal plants that can be quickly activated when wind and solar sources are not producing.

Brazil’s Ministry of Energy said the additional contracts would make the electric system more reliable, allowing more renewables to also enter the grid.

The inclusion of coal surprised experts, who say coal plants are not quick to start and so lack the needed flexibility.

Critics blame poor long-term planning for continued coal burning even as vast amounts of clean energy go unused due to weak demand and lack of transmission lines. They say this makes the government vulnerable to lobbying from coal and natural gas groups, despite higher financial and environmental costs.

The billionaire Batista brothers bought the Candiota plant before it had a new contract in sight because “they saw a possibility of being successful with their pressure tactics,” said Luiz Eduardo Barata, head of the National Front of Energy Consumers, a group critical of government support for coal.

Environmental group Arayara, another critic of Ambar, is seeking to suspend the plant’s environmental license in court.

In a statement, Ambar said the coal that fuels its Candiota plant is “secure and widely available to the power system, making it ideal for ensuring supply reliability.”

The company denied relying on political influence to secure a new contract for Candiota or plants in its portfolio. Ambar accused critics of representing the interests of large energy consumers at the expense of smaller ones — “regardless of the needs of the power system, the environment or the Brazilian population.”

NO JUST TRANSITION

Ambar’s work to keep coal alive puts Brazil in the company of countries such as India and South Africa, where powerful interest groups have undermined efforts to wean the energy system off coal, which is key to local economies in places like Candiota.

Shutting the coal plant there could lead to the loss of 10,000 jobs not only at Ambar’s operation but at the local mine feeding it and cement factories repurposing its ashes.

Jose Adolfo de Carvalho Junior, who manages a coal mine in Candiota, said the cost of shutting down the region’s only industry with quality jobs was not worth it.

“Will turning this off solve the planet’s carbon problem? No, it’s literally a drop in the ocean,” he said.

The uncertain future of the plant has residents on edge about their livelihoods, said Graca dos Santos, who was fired from the plant after it lost government contracts.

The life of the plant “needs to be extended so that a just energy transition can happen,” she said. “It’s not fair to leave an entire population without work.”

Lula’s government has no transition plan for Candiota and has not made much progress on plans for other coal plants.

The Candiota region’s beef, wine and olive oil sectors could employ coal workers with some retraining, said Joao Camargo, who founded a seed producers cooperative.

“They didn’t create any condition for the transition,” he said.

The head of the local coal miners’ union, Hermelindo Ferreira, pointed at maps showing areas that would lose industrial activity and jobs if the Candiota plant shuts down.

Still, confidence in coal’s long-term prospects is slowly fading in Candiota, he admitted. Some workers have already moved to nearby towns in search of better employment.

Even as he fights to save jobs, Ferreira said he is urging colleagues to learn new skills. He has earned a certification for maintenance on towers measuring wind speed, hoping the wind power industry will invest in the region.

“You don’t put all your eggs in one basket,” he said.

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Pop Mart International Group (SEHK:9992) shares have faced a slide of 20% over the past month, prompting investors to take a closer look at what is driving the change and how it affects valuation.

See our latest analysis for Pop Mart International Group.

The recent slide comes after a stellar run for Pop Mart International Group, as the 1-year total shareholder return stands at an impressive 183%. While the share price dropped nearly 20% in the last month, momentum is still positive in a broader context, which hints that changing perceptions around risks and growth potential are driving near-term volatility.

If the swings in Pop Mart have your attention, this could be the ideal moment to broaden your search. Discover fast growing stocks with high insider ownership.

With shares retreating sharply after such a strong run, investors are left to ask whether this recent dip means Pop Mart is trading below its true value, or if the market has already factored in all the future upside.

Pop Mart International Group trades at a price-to-earnings (P/E) ratio of 36.7x, which places it well above both the industry and peer averages. Compared to the last close price of HK$204.8, this high multiple suggests the market is pricing in substantial future growth for the company.

The price-to-earnings ratio measures how much investors are willing to pay for each dollar of earnings, making it a central gauge of market optimism about future profitability. For a consumer company experiencing rapid growth in Hong Kong’s specialty retail segment, a higher P/E can signal investor confidence in ongoing expansion and high earnings potential.

However, Pop Mart’s P/E is more than double the Hong Kong Specialty Retail industry average of 12x and significantly exceeds the estimated fair price-to-earnings ratio of 27.1x. This indicates that the stock is being priced at a marked premium to both its immediate competitors and what regression analysis suggests is appropriate for its growth and earnings profile. If the company cannot maintain its current rate of expansion, the multiple may revert closer to sector norms or its fair value, potentially leading to a valuation reset.

Explore the SWS fair ratio for Pop Mart International Group

Result: Price-to-Earnings of 36.7x (OVERVALUED)

However, slowing revenue momentum or disappointing earnings in future quarters could challenge the high expectations that are built into Pop Mart’s current valuation.

Find out about the key risks to this Pop Mart International Group narrative.

Looking through the lens of our DCF model, Pop Mart International Group appears undervalued and is trading about 30% below the estimated fair value. While the market is pricing in high growth using earnings multiples, this approach suggests significant upside remains if the company achieves its forecasts. What explains this big disconnect between models?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Pop Mart International Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 870 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you have your own perspective or prefer to dig deeper into the numbers, crafting your take on Pop Mart International Group is quick and easy. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Pop Mart International Group.

Act quickly and upgrade your investment search by reviewing fresh opportunities you may have overlooked. These stock ideas could provide the edge your portfolio needs.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 9992.HK.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Meta’s product managers aren’t waiting on engineers to turn ideas into demos. Instead, they are vibe coding to design prototype apps themselves and presenting them directly to CEO Mark Zuckerberg.

“PMs are actually vibe coding products, and we’re showing them to Zuck and leadership, and it’s allowing us to iterate and explore the space really fast,” said Joseph Spisak, a product director in Meta’s Superintelligence Labs (MSL), onstage at the TechEquity AI Summit in Sunnyvale, California, on Friday.

Vibe coding, a term originating in developer communities, refers to AI-assisted coding using instructions provided in natural language.

“We can literally vibe code products in a matter of hours, days, and explore the space,” Spisak added.

Spisak described Meta’s “internal systems” as powerful enough for non-engineers to adjust interfaces on the fly, allowing developers to “change colors and change ideas.”

The remarks shed new light on how Meta, like the rest of Silicon Valley, is reorganizing product development around AI assistants. Meta uses at least two: Metamate, a ChatGPT-style bot trained on internal data, and Devmate, a coding assistant that incorporates multiple large language models, including those from rivals like Anthropic, to speed up programming.

Speeding up the development process and embracing vibe coding have become top priorities at MSL, which Meta formed in June as it races against other AI rivals. One memo from late September said that Meta’s existing systems, designed for billions of users and giant engineering teams, take “too long” to deploy changes and are “not conducive to vibe coding,” making it harder for small, fast-moving AI teams to experiment.

Similar transformations are underway across Silicon Valley. Google has spent the past year pushing workers to integrate AI into every stage of product development. Last year, Google CEO Sundar Pichai said that more than a quarter of Google’s code is generated by AI before being reviewed by humans. At Microsoft, executives have told managers that “using AI is no longer optional,” according to an internal memo obtained by Business Insider.

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Meta is making similar internal pushes toward AI. The company tracks employees’ AI usage through dashboards, sets adoption targets, and even runs an internal game called Level Up that rewards staff who hit AI milestones, Business Insider reported last month.

Vibe coding skills have also become a recruiting priority across the tech industry. Firms like Reddit and DoorDash now list experience with AI coding tools like Cursor and Bolt as desired skills, according to a Business Insider report, and at least one Y Combinator startup calls vibe coding “non-negotiable” for new hires.

“We are getting to the point where the barriers are really low right now,” Spisak told the audience, adding that even his 11-year-old daughter now vibe codes new environments to play in Roblox

“This is what I tell PMs at Meta and other places where I mentor PMs,” Spisak said. “Don’t be afraid to get your hands dirty.”

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