Meta Platforms (META) saw its meta stock climb more than 3% after reporting first-quarter meta earnings that surpassed Wall Street forecasts. The Facebook parent posted adjusted earnings per share of $6.43 on sales of $42.31 billion for the quarter ending March 31, outpacing analysts’ expectations of $5.28 EPS on $41.40 billion in revenue. Even in the face of rising amazon tariffs and other macro pressures, Meta delivered robust growth and guided Q2 sales above estimates.
Meta Stock Price Reaction and Key Q1 Metrics
In late Wednesday trading, meta stock price rose to $568.76, reflecting investor confidence in Meta’s core advertising business and its bold AI investments. Year over year, first-quarter sales climbed 16%, while net income jumped 35% to $16.64 billion. Meta’s advertising revenue alone reached $41.39 billion, topping the $40.44 billion consensus.
- Earnings per Share: $6.43 vs. $5.28 expected
- Revenue: $42.31 billion vs. $41.40 billion expected
- Sales Growth: +16% YoY
- Net Income: $16.64 billion, up from $12.37 billion
“Our business is performing very well, and we’re well positioned to navigate the macroeconomic uncertainty,” CEO Mark Zuckerberg told analysts on the meta earnings call. He touted nearly 1 billion monthly users for Meta AI and 350 million monthly actives on Threads, underscoring the company’s expanding ecosystem beyond its flagship social apps.
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Strong Guidance and Expanded AI Capex Boost Meta’s Outlook
Investors focused intensely on Meta’s second-quarter guidance, given concerns over trade-related cost pressures. Finance Chief Susan Li projected Q2 sales in a range of $42.5 billion to $45.5 billion, aligning with the $44.03 billion consensus and edging past a narrower $43.8 billion forecast.
Of particular note, Meta raised its 2025 capital expenditure forecast to $64 billion–$72 billion—up from $60 billion–$65 billion—citing increased investment in AI data centers and higher infrastructure hardware costs. Despite this, the company trimmed its 2025 total expenses midpoint by $1 billion to $115.5 billion, demonstrating disciplined cost management.
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User Growth, Reality Labs, and Regional Ad Trends
Beyond financials, Meta highlighted healthy user engagement:
- Daily Active Users: 3.43 billion, surpassing the 3.39 billion estimate.
- Threads Monthly Actives: Climbed from 320 million in January to 350 million, with ad support rolling out globally.
- Meta AI Actives: Nearly 1 billion monthly users, accessible primarily through WhatsApp and the new standalone app.
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However, Meta acknowledged headwinds: its Reality Labs division reported a $4.2 billion operating loss on $412 million in sales. Down 6% year over year and below the $492.7 million estimate. It also warned of potential revenue impacts in Europe from a new European Commission ruling against its no-ads subscription service, with more clarity expected by Q3.
In the Asia-Pacific region, ad sales reached $8.22 billion. Slightly below the anticipated $8.42 billion—reflecting reduced spending by e-commerce exporters ahead of the de minimis tariff exemption repeal.
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Meta Stock Position and Comparative Context
Prior to the earnings report, Meta shares had dipped 6.1% in 2025, slightly underperforming the S&P 500’s 5.3% slide. Yet, with an IBD Composite Rating of 86/99, the stock remains a top growth contender. The upbeat meta earnings call and strengthened guidance may propel Meta back toward the coveted 90+ Composite Rating threshold.
Meta’s results stand in contrast to peers like Snap and Google. Both of which warned of ad-revenue headwinds tied to Asia trade issues. As Amazon and Reddit prepare Q1 reports, investors will closely watch whether other tech giants can match Meta’s combination of revenue growth, margin management, and strategic investment.
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