Meta Stock Surges as Earnings Beat Estimates and Meta AI Nears 1 Billion Users

Meta Stock Surges as Earnings Beat Estimates and Meta AI Nears 1 Billion Users

Meta Platforms Inc. (NASDAQ: META) reported strong first-quarter results that topped Wall Street expectations, lifting its stock more than 5% in after-hours trading on Wednesday.

The social media giant, which owns Facebook, Instagram, and WhatsApp, posted revenue of $42.31 billion, marking a 16% year-over-year increase and beating analyst forecasts. Net income rose to $16.64 billion, or $6.43 per share, up from $12.37 billion, or $4.71 per share, during the same quarter last year. Both figures exceeded projections.

Advertising, Meta's primary revenue source, also grew 16% to $41.39 billion, surpassing analyst estimates.

Meta Boosts AI Investment

CEO Mark Zuckerberg said, “We've had a strong start to an important year. Our community continues to grow, and our business is performing very well. We're making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly active users.”

To support its AI initiatives, Meta increased its capital expenditure forecast for 2024 to $64 billion–$72 billion, up from the previously projected $60 billion–$65 billion.

Looking ahead, the company expects second-quarter revenue to range between $42.5 billion and $45.5 billion, compared to analysts' average estimate of $44.13 billion.

Despite Wednesday’s rally, Meta shares were down 6% year-to-date through the close of regular trading.