Meta Beats Expectations with Strong First Quarter Financial Results: Company Investing Heavily in AI and Metaverse Development

Meta, formerly known as Facebook, has released its financial results for the first quarter of 2024. The company reported revenues of $36.46 billion, a 27% increase from the corresponding quarter. Forecasts predicted revenues of around $36.1 billion, and this growth marks the fifth quarter in a row where Meta has shown strong revenue growth. However, the company stated that it expects revenues in the second quarter to be in the range of $36.5 to $39 billion, with fluctuations in foreign exchange rates affecting revenues by about 1%.

Meta’s profit per share stood at $4.71, surpassing analysts’ expectations of $4.3 per share, while revenues from advertising totaled approximately $35.64 billion, slightly above early forecasts. The company has been investing significantly in developing artificial intelligence and the metaverse, with capital expenditures of around $6.72 billion in the last quarter. This has been seen positively by Wall Street, as the company’s net profit is now higher than its capital expenditures.

Despite these successes, there are concerns about the increase in expenses and investments related to artificial intelligence development. The company predicts expenses for 2024 to reach $96-99 billion, up from previous estimates, primarily due to higher infrastructure and legal costs. Additionally, annual capital expenditures for 2024 are expected to be in the range of $35-40 billion.

Despite these concerns, Meta seems to be continuously innovating and expanding its offerings. The company recently reported that its Metaverse division generated sales of $440 million in the quarter while also reporting significant losses of $3.85 billion