Meta made a prediction last year its generative AI products would rake in $2 billion to $3 billion in revenue in 2025, and between $460 billion and $1.4 trillion by 2035, according to court documents unsealed Wednesday.
Meta Platforms, Inc. (NASDAQ:META ) Q1 2025 Earnings Conference Call April 30, 2025 5:00 PM ET Company Participants Kenneth Dorell - Director, Investor Relations Mark Zuckerberg - Chief Executive Officer Susan Li - Chief Financial Officer Conference Call Participants Brian Nowak - Morgan Stanley Eric Sheridan - Goldman Sachs Justin Post - Bank of America Doug Anmuth - JPMorgan Mark Shmulik - Bernstein Ross Sandler - Barclays Kenneth Gawrelski - Wells Fargo Youssef Squali - Truist Securities Mark Mahaney - Evercore ISI Operator Good afternoon. My name is Krista, and I will be your conference operator today.
Meta CEO Mark Zuckerberg said Wednesday (April 30) that the social media giant will increase its spending for artificial intelligence (AI) data centers this year as it embeds the technology more deeply throughout its family of apps.
Chinese online retailers have cut back their spending on Facebook and Instagram ads in reaction to President Donald Trump's tough trade policy with the country. Meta's finance chief Susan Li said Wednesday that "Asia-based e-commerce exporters" have reduced their spending with the social media company.
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.