Meta Platforms Inc. reported its first quarter results after the bell on Wednesday, beating analyst expectations on both revenue and earnings per share (EPS). The company’s shares surged more than 5% in premarket trading following the announcement.
For the quarter, Meta generated $42.3 billion in revenue, exceeding the consensus estimate of $41.3 billion. EPS came in at $6.43, beating forecasts of $5.25. Advertising revenue accounted for most of the company’s earnings, reaching $41.39 billion and outpacing estimates of $40.5 billion.
However, Meta also reported an operating loss of $4.21 billion from its Reality Labs segment. The company raised its full-year capital expenditure estimate to between $64 billion and $72 billion, up from previous projections.
Despite the strong earnings report, Meta’s shares have declined more than 7% year-to-date due to concerns over advertising slowdowns amid tariff uncertainty. Additionally, the company is facing a lawsuit from the Federal Trade Commission (FTC) over allegations of holding an illegal monopoly on personal social networking.
The FTC claims that Meta must sell Instagram and WhatsApp as part of a remedy for its alleged wrongdoing. The commission’s demands range from $18 billion to $30 billion, with CEO Mark Zuckerberg eventually offering a settlement of $1 billion.
Source: https://finance.yahoo.com/news/meta-beats-q1-earnings-estimates-offers-strong-q2-outlook-despite-fears-of-tariff-influenced-ad-slowdown-201326483.html