How AI helped Meta beat Wall Street's Q1 predictions
Briefly

Meta Platforms Inc. reported strong first-quarter earnings, with a 35% increase in profits fueled by robust advertising revenue boosted by AI enhancements. The company earned $16.64 billion, surpassing analysts' expectations. CEO Mark Zuckerberg highlighted continued business growth and advancements in AI technology, such as AI glasses and Meta AI. Despite favorable results, analysts warn of potential revenue challenges due to slowing ad spending, particularly from China. As a response, Meta increased its capital expenditures for 2025 to support its data center and AI initiatives, reflecting a strategic emphasis on technology investment moving forward.
"It was a 'good quarter for Meta, but it was before the economic turmoil really kicked in and before the seesaw of the tariffs began,' said Sonata Insights chief analyst Debra Aho Williamson."
"We've had a strong start to an important year, our community continues to grow and our business is performing very well," CEO Mark Zuckerberg said in a statement.
"Meta should be able to withstand any revenue shortfall from advertisers from China if it can continue to improve its AI-driven advertising tools," added Williamson.
"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 stated.
Read at Fast Company
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