From Nasdaq: 2024-04-25 12:33:00

Meta Platforms reported earnings of $4.71 per share, beating estimates and showing a 27.3% increase in revenue. The company is investing heavily in AI, with over 50% of Instagram content recommended by AI algorithms. However, stock fell 15.15% after CEO Mark Zuckerberg warned that monetization of AI services will take time.

Revenues from Meta’s Family of Apps, including Facebook and Instagram, increased 27.2% year over year to $36.02 billion. Ad revenues rose 26.8% to $35.64 billion, mainly driven by online commerce. Operating income jumped 91.2% to $13.82 billion, with an operating margin of 37.9%. Cash equivalents stood at $58.12 billion.

Meta projects revenue between $36.5 billion and $39 billion for Q2 2024, but expects operating expenses between $96 billion and $99 billion for the full year. The company plans to significantly increase investments in developing AI services, leading to an after-hours stock drop of 15.15%. Other Zacks Rank #1 and #2 stocks in the sector include Pinterest, AMD, and NVIDIA.



Read more at Nasdaq: Meta Platforms’ (META) Q1 Earnings Beat, Revenues Up Y/Y