Gelonghui, April 25 | Meta (META.US) U.S. stocks fell more than 14.5% before the market opened, to US$421.7.
Meta\’s first-quarter revenue was US$36.46 billion, higher than the expected US$36.12 billion, a year-on-year increase of 27%, the fifth consecutive quarter of accelerated growth, and the fastest expansion rate in three years since 2021.
However, the company expects second-quarter revenue to be in the range of US$36.5 billion to US$39 billion, with the midpoint lower than market expectations of US$38.24 billion, equivalent to a year-on-year increase of 18%.
In addition, Meta raised its full-year capital expenditures to $35-40 billion from its previous forecast of $30-37 billion, and expects to continue to increase spending next year.
Meta CEO Zuckerberg said that Meta should significantly increase investment in the next few years to build more advanced models and the world\’s largest artificial intelligence service.
These expenses must \”grow meaningfully\” before we can generate significant revenue from these new products.
