Meta's strong quarter quells concerns that its aggressive AI spending is misguided
Briefly

Meta Platforms experienced a notable stock increase after announcing strong first-quarter results, with revenues up 16.1% to $42.31 billion, surpassing expectations. Earnings per share also exceeded forecasts, rising 36.5% to $6.43. Investors reacted positively, considering Meta's increased capital expenditure guidance for 2025 at $67 billion, which is associated with ongoing AI investments. Although this increase raised some eyebrows in light of past reactions to high spending, investors currently appear reassured by the company's profitability and growth prospects, despite overall market volatility in the tech sector.
Meta Platforms' shares surged after reporting a strong first quarter with a 16.1% revenue increase, defying forecasts and underscoring its commitment to AI spending.
Meta's impressive earnings of $6.43 per share, a 36.5% increase year-over-year, exceeded expectations by a large margin, boosting investor confidence.
Despite the challenges of a broad tech stock decline, investor receptivity to Meta's increased capital expenditures suggests a more measured response to growth investments moving forward.
The company forecasts a $67 billion capital expenditure for 2025, reflecting an increase driven by ongoing AI investments, amid a landscape of economic uncertainty.
Read at www.cnbc.com
[
|
]