Meta Platforms Reports Strong Q1 Results Amid Economic Uncertainty
Meta Platforms Inc. posted better-than-expected first-quarter results, driven by advertising revenue, with shares climbing in after-hours trading.
This continues Meta’s streak of beating Wall Street expectations over the past few quarters.
Meta’s quarterly earnings beat Wall Street expectations as its AI investments rise by billions
The Guardian·15d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.Meta said the new guidance reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware.
Meta's first quarter earnings, revenue beat Wall Street's expectations
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Meta is in the vanguard of tech giants reporting earnings against a backdrop of significant turbulence in the global economy.
Meta Q1 Results Beat Expectations, Easing Concerns About Tariff-Tossed Economy’s Threat To Big Tech
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Summary
Meta Platforms Inc. reported a strong first quarter with earnings of $16.64 billion, or $6.43 per share, surpassing analysts' expectations for revenue and earnings. This success is driven by robust advertising revenue despite macroeconomic uncertainties. The company forecasts Q2 revenue between $42.5 billion and $45.5 billion and plans to increase its capital expenditures mainly for AI development. However, ongoing regulatory challenges and uncertainties around future ad markets pose risks to its growth. CEO Mark Zuckerberg expressed optimism about the firm’s community growth and advancements in artificial intelligence.
Perspectives
Meta reported strong earnings for the first quarter of 2025, exceeding analysts' expectations with $42.32 billion in revenue and $6.43 earnings per share, leading to a surge in its stock price.
Despite promising results, Meta faces future challenges including regulatory scrutiny and high capital expenditure estimates, which are now projected to be between $64-72 billion, primarily for AI investments.
Daily active users across Meta's platforms grew by 6% year-over-year, highlighting continued user engagement amid a complex economic landscape.