Meta Platforms, the parent company of Facebook and Instagram, kicked off 2024 with a strong first quarter, beating Wall Street estimates thanks to a surge in ad revenue — much of it powered by artificial intelligence.

In results released Wednesday, Meta reported $16.64 billion in profit ($6.43 per share), marking a 35% jump from the same period last year. Revenue also rose by 16% to $42.31 billion, topping analysts’ expectations of $41.34 billion, according to FactSet.

The stock responded positively, climbing 4.4% in after-hours trading to $573.20, despite being down about 8% year-to-date.

“We’ve had a strong start to an important year,” said CEO Mark Zuckerberg. “Our community continues to grow, and our business is performing very well.”

Much of Meta’s Q1 success came from its continued improvements in AI-powered advertising tools, which have helped boost performance across its social media platforms.

While some economic concerns still loom — including reduced ad spending from China-based brands like Temu and Shein — analysts believe Meta’s investment in AI could help cushion any future impact.

“If Meta continues enhancing its AI ad tools, it can likely offset any revenue drop from Chinese advertisers,” said Debra Aho Williamson, chief analyst at Sonata Insights.

Meta is doubling down on its AI future. The company recently launched a standalone AI app, called Meta AI, featuring a new “discover” feed that showcases how users are engaging with the technology. Zuckerberg also highlighted progress on AI-powered glasses and noted that Meta AI now boasts nearly 1 billion monthly active users.

To support these ambitions, Meta is boosting its capital expenditure forecast for 2025 to $64–$72 billion, up from the earlier range of $60–$65 billion. The additional investment will focus on data centers and infrastructure to power its growing AI ecosystem.

Despite broader economic uncertainty and ongoing tariff concerns, Meta also provided revenue guidance for the second quarter — a move seen as a positive signal by some analysts.

“The fact that Meta is offering guidance when many companies are staying quiet is a bullish sign,” said Andrew Rocco of Zacks Investment Research.

Meta’s reach continues to expand globally. In March alone, an average of 3.4 billion people used at least one Meta-owned app, up 6% from a year ago.

Source: AP News – Meta’s first quarter earnings, revenue beat Wall Street’s expectations

Tags: Meta Platforms, Meta Earnings, Meta Q1 Earnings, Meta Revenue Growth, Artificial Intelligence, AI Advertising, Digital Advertising, Meta AI, Mark Zuckerberg, Facebook, Instagram, AI Infrastructure, Data Centers, Technology Earnings, Big Tech, Social Media Platforms, AI Investment, Online Advertising, Meta Financial Results, Technology Industry

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