Meta Stock Rallies as Earnings Top Estimates, Meta AI Hits User Milestone

Meta (META) reported better-than-expected quarterly earnings, sending shares higher in extended trading Wednesday.

The Facebook, Instagram, and WhatsApp parent reported first-quarter revenue of $42.31 billion, up 16% year-over-year and above the analyst consensus from Visible Alpha. Net income of $16.64 billion, or $6.43 per share, compared to $12.37 billion, or $4.71 per share, a year earlier, also topping projections. Advertising revenue, which makes up the bulk of Meta’s revenue, climbed 16% to $41.39 billion, surpassing Street estimates.

Meta shares rose over 5% in after-hours trading. The stock was down 6% for the year so far through Wednesday’s close.

Meta Raises Spending Plans To Boost AI Capacity

“We’ve had a strong start to an important year, our community continues to grow and our business is performing very well,” said CEO Mark Zuckerberg, adding, “we’re making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly actives.”

Meta said it plans to boost its capital expenditures this year to $64 billion to $72 billion to grow its AI capacity, up from $60 billion to $65 billion previously.

Looking ahead, the company said it anticipates second-quarter revenue between $42.5 billion and $45.5 billion. Analysts were looking for $44.13 billion.

This article has been updated since it was first published to include additional information and reflect more recent share price values.