Despite concerns over decreased advertising from Chinese e-commerce firms like Temu and Shein, which previously contributed about 11% of Meta's revenue, the company reported a strong Q1 performance. Meta's revenue rose 16% year-over-year to $42.31 billion, with earnings per share climbing 37%. The impact of reduced Chinese spending was somewhat mitigated as funds were redirected to other markets. Additionally, investments in AI and data center infrastructure are expected to facilitate future growth, although Reality Labs is still experiencing losses.
The reduction in ad spending from Chinese e-commerce exporters stems from both the current U.S.-China tariff war as well as the end to the de minimis exemption.
Meta's Q1 revenue jumped 16% year over year, or 19% in constant currencies, to $42.31 billion, while earnings per share surged 37% year over year to $6.43.
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