Meta Platforms Inc. reported $42.3 billion in first-quarter revenue, surpassing analyst estimates and easing Wall Street worries regarding the trade war's effects. CEO Mark Zuckerberg assured investors of the company's ability to handle macroeconomic uncertainties and emphasized the critical role of its advertising business in funding AI advancements. The company anticipates higher spending due to tariffs and supplier challenges, shifting its focus on optimizing supply chains. The stock surged by 8% post-announcement as Meta intensifies investments to compete effectively in AI technology alongside leading rivals.
Meta's strong first-quarter revenue of $42.3 billion alleviated Wall Street's worries about the trade war's impact, exceeding analysts' expectations.
Zuckerberg emphasized that despite macroeconomic uncertainties, Meta's advertising business, crucial for funding AI expansion, remains on a growth trajectory.
Chief Financial Officer Susan Li highlighted that rising infrastructure costs stem from global supplier sourcing amidst ongoing trade discussions, impacting earnings.
Meta is investing significantly in AI to compete with rivals like OpenAI and Google, aiming to enhance ad targeting and content personalization.
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