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Meta released its first quarter results on Wednesday.
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Mark Zuckerberg spoke about Meta’s plans to invest more in AI.
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Shares fell 17% after hours.
Meta released its first quarter results after the closing bell on Wednesday.
The company reported revenue and earnings per share that beat analysts’ consensus estimates. But shares fell after Meta gave a second-quarter sales range that was rather light compared to forecasts and said it would spend more than expected this year.
This report is Meta’s first without monthly and daily average user counts specifically broken down for Facebook. Instead, the company released overall “family of apps” results that also included Instagram and WhatsApp. The combined group reported revenue of $36 billion, beating the consensus estimate of $35.5 billion.
Meta’s actions fell as much as 17% after hours, after sliding 0.5% on Wednesday. It previously gained a solid 39% in 2024.
During the investor call, CEO Mark Zuckerberg focused primarily on Meta’s plans to invest more significantly in AI. He also highlighted the company’s recent partnership with Ray-Ban.
Meta stock showed no signs of recovery as the Q&A session ended.
Shares remain down nearly 17% after hours as the call nears its close.
Susan Li, Meta’s CFO, is quite discreet on TikTok
Li says Meta followed the potential of in TikTok closely, but it’s too early to comment on the impact this might have on Meta’s business – for example, Instagram Reels.
The call moves to the question-and-answer portion
It’s time for investors and analysts to (try) to get more details.
Zuckerberg seems interested in Apple’s Vision Pro
Zuckerberg promotes Ray-Ban AI glasses from Meta. The company introduces new styles and features Tuesday.
“You know, I thought AR glasses wouldn’t really be a mainstream product until we had full holographic displays. And I still think it’s going to be great and it’s the state of maturity long term of the product But now it seems clear that there is also a significant market for fashionable AI glasses without a screen,” he says.
This could be seen as a dig at Apple’s Vision Pro headset, which has been accused of being bulky and uncomfortable. Or it could just be another step forward Zuck’s recent fashion journey.
Zuckerberg makes the call by directly addressing Meta’s AI plans and spending
He says the company plans to invest “much more” in AI, but warns that it will take “several years” to build “state-of-the-art AI.”
“The reality is that even as we shift many of our existing resources to AI, we will continue to significantly increase our investment envelope before we get a lot of revenue from some of these new products,” he says.
CEO Says Meta Has “Strong Monetization Track Record”…
