Key Stats:
- Today’s Price Change: 6.5%
- Current Share Price: $584
- 52-Week High: $741
- Analysts’ Price Target: $708
What Happened?
Meta Platforms (META) stock jumped as much as 7% after the social media giant reported first-quarter results that exceeded Wall Street expectations.
Meta posted earnings of $6.43 per share, well above the expected $5.21, and revenue of $42.31 billion, surpassing analysts’ forecasts of $41.36 billion. Meta’s net income surged 35% year-over-year to $16.64 billion.
For the second quarter, Meta provided revenue guidance of $42.5 billion to $45.5 billion, in line with analyst estimates of $44.03 billion.
It also reduced its 2025 total expense forecast to $113 billion to $118 billion, down from $114 billion to $119 billion previously.
However, Meta increased its capital expenditure outlook to $64-72 billion, up from $60-65 billion, citing additional data center investments to support its AI initiatives and rising infrastructure hardware costs, which may be affected by global trade uncertainties.
What the Market Is Telling Us
The positive stock reaction for META stock indicates that investors are encouraged by the company’s ability to maintain strong growth despite macroeconomic headwinds that have impacted other advertising-dependent companies, such as Snap (SNAP) and Google (GOOGL).
While Meta acknowledged seeing “some reduced spend in the U.S. from Asia-based e-commerce exporters” ahead of the de minimis loophole ending, the company’s overall performance suggests that its advertising business remains resilient.
The market appears particularly impressed by Meta’s continued user growth across its platforms, with daily active users rising to 3.43 billion (exceeding estimates) and Threads reaching 350 million monthly users.
Additionally, Meta AI’s rapid adoption, now with nearly 1 billion monthly users, indicates strong early traction in Meta’s expansion into AI services.
Despite ongoing heavy investments in Reality Labs (which posted a $4.2 billion quarterly loss) and increased capital expenditures for AI infrastructure, META stock investors seem confident in CEO Mark Zuckerberg’s statement that it is “well-positioned to navigate macroeconomic uncertainty” while continuing to build future growth engines.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
