- Meta’s (META) stock rose over 4% to $572.80 in after-hours trading after reporting Q1 earnings of $6.43 per share, beating the $5.23 consensus by $1.20, with revenues up 16.1% to $42.31 billion, surpassing the $41.34 billion estimate.
- The company saw a 6% increase in daily active people to 3.43 billion, with ad impressions up 5% and average ad prices rising 10%, while issuing in-line Q2 revenue guidance of $42.5 billion to $45.5 billion against a $43.84 billion consensus.
- Meta lowered its FY25 expense guidance to $113 billion to $118 billion from $114 billion to $119 billion and raised capex guidance to $64 billion to $72 billion from $60 billion to $65 billion, reflecting increased AI and data center investments.
Meta’s (META) stock surged over 4% to $572.80 in after-hours trading on Wednesday, driven by a robust first-quarter performance that exceeded Wall Street expectations, with earnings of $6.43 per share surpassing the consensus of $5.23 by $1.20 and revenues climbing 16.1% year-over-year to $42.31 billion against the anticipated $41.34 billion. The company reported strong user engagement, with daily active people across its Family of Apps averaging 3.43 billion in March 2025, up 6% from the previous year, while ad impressions grew 5% and the average price per ad rose 10% year-over-year. Meta’s optimistic outlook included in-line second-quarter revenue guidance of $42.5 billion to $45.5 billion, compared to the consensus of $43.8 billion, alongside a reduced full-year 2025 expense forecast of $113 billion to $118 billion, down from $114 billion to $119 billion, and an increased capital expenditure projection of $64 billion to $72 billion, up from $60 billion to $65 billion, reflecting heightened investments in AI-driven data centers and infrastructure hardware.
The strong financial results underscore Meta’s ability to capitalize on its advertising-driven business model, which remains resilient despite macroeconomic uncertainties and competitive pressures in the social media landscape. The 10% increase in average ad pricing, coupled with a 5% rise in ad impressions, highlights Meta’s effectiveness in monetizing its vast user base, which continues to grow as evidenced by the 3.43 billion daily active people. The company’s strategic focus on artificial intelligence, as reflected in the upward revision of its 2025 capital expenditure guidance, signals a commitment to enhancing its technological infrastructure to support advanced features and maintain its competitive edge in areas such as personalized content delivery and ad optimization.
Meta’s lowered expense guidance for 2025, now ranging from $113 billion to $118 billion, suggests disciplined cost management, potentially driven by efficiencies in operations and workforce adjustments, while the increased capital expenditure outlook of $64 billion to $72 billion emphasizes long-term investments in data centers and hardware to bolster AI capabilities. These investments align with broader industry trends, where tech giants are prioritizing AI to drive innovation and improve user experiences. Meta’s ability to deliver above-consensus earnings and revenue, combined with its confident guidance, reflects a strong operational foundation, even as it navigates challenges such as regulatory scrutiny and evolving privacy standards. The after-hours stock rally indicates investor confidence in Meta’s growth trajectory, underpinned by its advertising strength and strategic AI initiatives, positioning the company to sustain momentum in a dynamic digital economy.
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