Meta Platforms Shares Surge After Strong Q1 Earnings Report
Shares of Meta Platforms (NASDAQ: META) have seen a positive rise on Thursday, climbing 4.9% as of 12:46 p.m. ET, with a peak increase of 8% earlier in the day. This increase aligns with the broader market, as the S&P 500 (SNPINDEX: ^GSPC) rose 0.9%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 1.9%.
The company released its Q1 earnings report following the market’s close yesterday, surpassing analysts’ expectations.
Strong Performance in Q1 2025
Meta reported Q1 2025 earnings per share (EPS) of $6.43 on $42.3 billion in sales, reflecting a 35% growth in EPS year over year (YOY) and a 16% increase in sales YOY. These results exceed Wall Street’s projections. Additionally, Meta forecasts Q2 revenue between $42.5 billion and $45.5 billion, also exceeding expectations.
CEO Mark Zuckerberg highlighted the company’s competitive positioning amid economic uncertainty, noting resilience in its advertising segment and advancements in artificial intelligence (AI). “We’re making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly active users,” he stated.
Increased Investment in AI
Meta has significantly raised its capital expenditure forecast for 2025 to between $64 billion and $72 billion, marking a substantial increase from previous estimates. This rise is driven by its commitment to enhance AI programs and the requisite infrastructure. The company’s ability to harness AI for driving advertising revenue and efficiency underlines the technology’s vital role in its growth strategy.
Meta’s Strong Market Position
With a 6% year-over-year increase in its active user base across various social media platforms, Meta continues to leverage AI efficiencies for robust earnings growth. Its stock also appears reasonably priced compared to other major tech firms, suggesting an attractive investment opportunity.
Considerations for Investing in Meta Platforms
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Randi Zuckerberg, former director of market development for Facebook and sibling to CEO Mark Zuckerberg, serves on The Motley Fool’s board of directors. Johnny Rice does not hold any positions in mentioned stocks. The Motley Fool recommends Meta Platforms and maintains a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
