Meta Platforms rode strong promoting performance to beat analysts’ revenue estimates for the primary quarter and match expectations for the subsequent quarter on Wednesday, assuaging concerns from investors over tariff-related economic growth fears.
Shares of the corporate were up nearly 6% in prolonged trading.
The Facebook and Instagram parent company reported revenue of $42.31 billion for the primary quarter, compared with analysts’ average estimate of $41.40 billion, in keeping with data compiled by LSEG.
Meta expects second-quarter revenue to be between $42.5 billion and $45.5 billion, compared with estimates of $44.01 billion.
The corporate reported profits of $6.43 per share, beating estimates of $5.28 per share, per the LSEG data.
It also boosted its 2025 capital expenditure plans to between $64 billion and $72 billion. CEO Mark Zuckerberg previously said the corporate could spend as much as $65 billion this 12 months.
CFO Susan Li said in a statement the increase reflected additional data center investments to support artificial intelligence efforts, in addition to increases in hardware costs.
The increased spending outlays could help soothe concerns that AI interest is perhaps waning, especially after analysts in March flagged early signs of tech majors pulling back on latest data center commitments.
Shares of AI chip makers rose after Meta and Microsoft reported financial results. Nvidia rose 2.8% and Advanced Micro Devices rose 2%.
Still, the increased spending represents a red flag attributable to market concerns over economic turmoil, said Debra Aho Williamson, founder and chief analyst at Sonata Insights.
“If ad revenue continues to carry strong, then this increase in capital expenditures will probably be less of a bitter pill for investors to swallow,” Williamson said.
Meta lowered its total expenses forecast for the 12 months to between $113 billion and $118 billion, from its earlier expectations of $114 billion to $119 billion.
Family each day energetic people (DAP), a metric it uses to trace unique users who open any one in all its apps in a day, rose 6% year-over-year to three.43 billion.
That massive user base makes Meta a reliable go-to for advertisers at a time when US tariff-induced uncertainty has prompted firms to tighten marketing budgets and delay campaigns.
Promoting accounts for the overwhelming majority of Meta’s revenue. A few of the biggest US advertisers include Chinese e-commerce web sites Temu and Shein, they usually are sharply cutting their US digital ad spending, industry data showed.
Google parent Alphabet said during its quarterly earnings last week that it expected a “slight headwind” to ad revenues attributable to changes in President Trump’s trade policy.
A day earlier, smaller rival Snap held back its second-quarter forecast and said that economic uncertainty and the Trump administration’s ending of a duty-free import loophole was affecting its ad business, causing its shares to crater.
Meta’s proven promoting reliability means it stands to achieve from economic instability, said Emarketer senior analyst Minda Smiley.
Nevertheless, it “won’t be spared from a broader downturn if advertisers make substantial budget cuts and consumer spending falters,” she added.
Meta is facing a high-stakes trial in Washington, during which the Federal Trade Commission is searching for to unwind the corporate’s acquisitions of prized assets Instagram and WhatsApp.
The Menlo Park, California-based company can be fighting the perception it could have fallen behind within the AI race, after its initial set of Llama 4 large language models, released earlier this month, fell wanting performance expectations.
Meta Platforms rode strong promoting performance to beat analysts’ revenue estimates for the primary quarter and match expectations for the subsequent quarter on Wednesday, assuaging concerns from investors over tariff-related economic growth fears.
Shares of the corporate were up nearly 6% in prolonged trading.
The Facebook and Instagram parent company reported revenue of $42.31 billion for the primary quarter, compared with analysts’ average estimate of $41.40 billion, in keeping with data compiled by LSEG.
Meta expects second-quarter revenue to be between $42.5 billion and $45.5 billion, compared with estimates of $44.01 billion.
The corporate reported profits of $6.43 per share, beating estimates of $5.28 per share, per the LSEG data.
It also boosted its 2025 capital expenditure plans to between $64 billion and $72 billion. CEO Mark Zuckerberg previously said the corporate could spend as much as $65 billion this 12 months.
CFO Susan Li said in a statement the increase reflected additional data center investments to support artificial intelligence efforts, in addition to increases in hardware costs.
The increased spending outlays could help soothe concerns that AI interest is perhaps waning, especially after analysts in March flagged early signs of tech majors pulling back on latest data center commitments.
Shares of AI chip makers rose after Meta and Microsoft reported financial results. Nvidia rose 2.8% and Advanced Micro Devices rose 2%.
Still, the increased spending represents a red flag attributable to market concerns over economic turmoil, said Debra Aho Williamson, founder and chief analyst at Sonata Insights.
“If ad revenue continues to carry strong, then this increase in capital expenditures will probably be less of a bitter pill for investors to swallow,” Williamson said.
Meta lowered its total expenses forecast for the 12 months to between $113 billion and $118 billion, from its earlier expectations of $114 billion to $119 billion.
Family each day energetic people (DAP), a metric it uses to trace unique users who open any one in all its apps in a day, rose 6% year-over-year to three.43 billion.
That massive user base makes Meta a reliable go-to for advertisers at a time when US tariff-induced uncertainty has prompted firms to tighten marketing budgets and delay campaigns.
Promoting accounts for the overwhelming majority of Meta’s revenue. A few of the biggest US advertisers include Chinese e-commerce web sites Temu and Shein, they usually are sharply cutting their US digital ad spending, industry data showed.
Google parent Alphabet said during its quarterly earnings last week that it expected a “slight headwind” to ad revenues attributable to changes in President Trump’s trade policy.
A day earlier, smaller rival Snap held back its second-quarter forecast and said that economic uncertainty and the Trump administration’s ending of a duty-free import loophole was affecting its ad business, causing its shares to crater.
Meta’s proven promoting reliability means it stands to achieve from economic instability, said Emarketer senior analyst Minda Smiley.
Nevertheless, it “won’t be spared from a broader downturn if advertisers make substantial budget cuts and consumer spending falters,” she added.
Meta is facing a high-stakes trial in Washington, during which the Federal Trade Commission is searching for to unwind the corporate’s acquisitions of prized assets Instagram and WhatsApp.
The Menlo Park, California-based company can be fighting the perception it could have fallen behind within the AI race, after its initial set of Llama 4 large language models, released earlier this month, fell wanting performance expectations.
