Meta Shares Jump After Q1 Earnings Beat, Lifts Capex Outlook on AI
2025-05-01T15:33:46Z
Meta Raises Spending Forecast to Power AI Expansion
Meta (NASDAQ:META) shares surged more than 5% in pre-market trading on Thursday after the social-media giant reported first-quarter revenue that topped Wall Street forecasts and issued Q2 guidance in line with expectations, according to a Thursday press release.
Revenue climbed to $42.3 billion, beating the $41.4 billion consensus, while EPS came in at $6.43 versus the $5.28 analysts had projected. Net income jumped 35% year-over-year to $16.6 billion.
Looking ahead, Chief Financial Officer Susan Li said second-quarter sales should range from $42.5 billion to $45.5 billion, roughly in line with the $44.0 billion forecast. She added the company has begun to see some pull-back in ad spending from Asia-based e-commerce exporters.
Meta raised its 2025 capital-expenditure outlook to $64 billion$72 billion, up from $60 billion$65 billion, citing higher infrastructure-hardware costs tied to global supply-chain uncertainties. At the same time, it trimmed its expense forecast to $113 billion, $118 billion.
Daily active users climbed to 3.43 billion, topping estimates, and Meta AI now boasts nearly 1 billion monthly users. Reality Labs narrowed its Q1 operating loss to $4.2 billion, slightly better than expected, though hardware sales remained below forecasts.
Our business is performing very well, and we’re positioned to navigate macro uncertainty, CEO Mark Zuckerberg told analysts.
Is Meta Stock a Buy Now?
Meta Shares Jump After Q1 Earnings Beat, Lifts Capex Outlook on AI
Based on the one year price targets offered by 61 analysts, the average target price for Meta Platforms Inc is $705.66 with a high estimate of $935.00 and a low estimate of $448.00. The average target implies a upside of +28.54% from the current price of $549.00.
Based on GuruFocus estimates, the estimated GF Value for Meta Platforms Inc in one year is $487.81, suggesting a downside of -11.15% from the current price of $549.00.
This article first appeared on GuruFocus.
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