Meta Platforms beats earnings expectations, shows advertising resilience; stock jumps 6%

From CNBC: 2025-05-01 09:39:00

Meta CEO Mark Zuckerberg attended the Meta Connect event in Menlo Park, California on Sept. 25, 2024. Meta Platforms shares surged over 6% after beating earnings expectations and showing advertising resilience in a challenging macroeconomic environment. First-quarter revenues grew 16% to $42.31 billion, with earnings at $6.43 per share and net income of $16.64 billion.

The company issued guidance for the current period, expecting sales between $42.5 billion and $45.5 billion. Meta reassured analysts of its strong performance amid macroeconomic uncertainty. Advertising revenue for the first quarter reached $41.39 billion, beating Wall Street’s forecast. Meta increased its capital expenditures range to $64 billion to $72 billion to invest in AI and infrastructure.

Analysts are closely monitoring advertising demand amid tariff concerns. Meta’s finance chief noted reduced spending from Asia-based e-commerce exporters in the U.S. The company’s AI ad investments are expected to drive continued relative share gains in the digital ad market. Meta’s spending increase was called a “bold strategy” against an uncertain macroeconomic backdrop by Bernstein’s Mark Shmulik.



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