AI capabilities
After initially estimating to spend between $30 and $37 billion, the company now projects to spend between $35 and $40 billion (£28–32 billion) in 2024.
That was more significant to investors than the good news about earnings.
Revenue for the first quarter increased by 27% to $36.46 billion, compared to analysts’ expectations of $36.16 billion in earnings.
Analysts did note that Meta’s strategy made sense.
According to Sophie Lund-Yates of Hargreaves Lansdown, marketers were prepared to spend more money “in a time when digital advertising uncertainty remains rife” because of Meta’s “substantial investment” in AI, which has helped the company draw users onto its platforms for longer.
She claimed that elections are scheduled in more than 50 nations this year, “which hugely increases uncertainty” and may mislead advertisers.
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