Facebook's parent company, Meta Platforms Inc., delivered a strong earnings beat on Wednesday, and that's likely easing investor concerns over big spending on artificial intelligence.
While PCE month over month was flat on both headline and core, Pending Home Sales increased and late earnings reports posted beats.
America's tech giants aren't showing signs of slowing AI spending plans despite a stretch of economic uncertainty that has meant tough times for technology shares.
Meta Platforms, Inc.'s Q1 2025 results are outstanding, with double-digit revenue growth, a 27% increase in operating income, and a 35% rise in net income. Family Daily Active People, or DAP, reached 3.43 billion, showcasing Meta's unparalleled user base and effective AI-driven advertising, boosting ad revenues by 16%. CapEx spending is revised upward to $64-$72 billion for 2025, primarily for AI advancements, indicating strong demand and future cash flow potential.
Meta Platforms, Inc. reported strong earnings with a double beat, showing a 16% revenue increase, driven by user growth and higher ad prices. META's valuation remains attractive at 22x forward earnings, with potential for upward revisions following the Q1 earnings beat. META's Q2 guidance is strong, and cost efficiency improvements are expected, although higher capital expenditures might slightly impact free cash flow and buybacks.
Meta (META) reported better-than-expected quarterly earnings, sending shares higher in extended trading Wednesday.
The results come as Meta faces a high-stakes trial in Washington, in which the Federal Trade Commission is seeking to unwind the company's acquisitions of prized assets Instagram and WhatsApp.
Social media giant Meta Platforms posted better-than-expected numbers in the first quarter, with revenue surging 16% from a year ago to reach $42.3 billion, lifting shares in after-hours trading. The results showed advertising dollars continuing to fill Meta's coffers despite significant macroeconomic uncertainty. Shares in Meta climbed 4% after hours.
Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) delivered better-than-expected revenue and profits for the first quarter, sending shares of the Facebook, Instagram and WhatsApp owner higher afterhours on Wednesday. First quarter revenue was up 16% from the same periood last year at $42.31 billion, almost $1 billion higher than the $41.36 Wall Street consensus estimate.
Tens of thousands of UK investors, whether they realise it or not, are exposed to Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB). Some own the shares outright in a SIPP or ISA.
The market is rife with fear about tariffs and their potential impact on the broader economy. This caused many stocks to sell off.
Facebook owner Meta Platforms has launched a stand-alone artificial-intelligence app, becoming the latest technology giant to enter a field already facing intense competition.