Meta Platforms Inc. posted first quarter sales that beat expectations in a sign that the company’s advertising business is so far weathering the Trump administration’s ongoing trade war. The owner of Facebook and Instagram also said current-quarter revenue will be in line with analysts’ expectations, and that it will boost spending:
- Revenue for the 1st quarter of $US42.3 billion, beating analyst estimates of $41.4 billion.
- EPS of $6.43 beat analyst estimates of $5.25.
- Operating margin of 41% beat analyst estimates of 37.5%.
The company raised its projection for full-year capital expenditures as it invests heavily to keep pace with rivals like OpenAI and Alphabet Inc.’s Google in developing large language models and chatbots. Meta now expects to spend $64 billion to $72 billion, up from its prior outlook of $60 billion to $65 billion. The result and rhetoric were welcomed by the market, with its stock rising by over 5% in after-hours trading.
- We can see META trading above $US600 over the coming weeks.
MM is bullish META
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