Current:Home > BackMeta more than doubles Q1 profit but revenue guidance pulls shares down after-hours-InfoLens
Meta more than doubles Q1 profit but revenue guidance pulls shares down after-hours
View Date:2024-12-23 11:50:39
Facebook and Instagram parent company Meta said Wednesday its first-quarter profit more than doubled, boosted by higher advertising revenue and a 6% increase on the average price of ads on its platforms. But its shares dropped sharply in after-hours trading following lukewarm revenue guidance.
Meta Platforms Inc. earned $12.37 billion, or $4.71 per share, in the January-March period. That’s up from $5.71 billion, or $2.20 per share, in the same period a year earlier.
Revenue rose 27% to $36.46 billion from $28.65 billion.
Analysts, on average, were expecting earnings of $4.32 per share on revenue of $36.14 billion, according to a poll by FactSet.
For the current quarter, the Menlo Park, California-based company said it expects revenue between $36.5 billion and $39 billion. Analysts are expecting revenue of $38.25 billion for the second quarter, which is higher than the midpoint of Meta’s guidance range.
Meta also said it expects its 2024 capital expenses to be higher than anticipated due to its investments in artificial intelligence. It is forecasting expenses in the range of $35 billion to $40 billion, up from its earlier guidance of $30 billion to $37 billion.
“Meta’s earnings should serve as a stark warning for companies reporting this earnings season,” said Thomas Monteiro, senior analyst at Investing.com “Even though the company did beat estimates in all top- and bottom-line metrics, it didn’t matter as much as the reported lowering revenue expectations for Q2. This is the exact opposite of what Tesla did yesterday and goes to show that investors are currently looking at the near future with heavy mistrust.”
The number of people using Meta’s apps continued to increase, with 3.24 billion users on average for March in its “family of apps” that includes Facebook, Instagram, WhatsApp and Messenger. That’s up 7% year-over-year.
Meta’s shares fell almost 16% in after-hours trading.
veryGood! (9544)
Related
- Ben Affleck and His Son Samuel, 12, Enjoy a Rare Night Out Together
- The Victoria's Secret Fashion Show returns: How to watch the runway
- Lonzo Ball makes triumphant return for first NBA game since Jan. 2022
- WNBA Finals Game 3 winners, losers: Liberty on brink of first title
- Blake Snell free agent rumors: Best fits for two-time Cy Young winner
- Lawyers for Sean ‘Diddy’ Combs ask judge to release identities of his accusers
- Protesters demand Kellogg remove artificial colors from Froot Loops and other cereals
- Liam Payne was a prolific One Direction songwriter as well as singer: His best songs
- Will Mike Tyson vs. Jake Paul end in KO? Boxers handle question differently
- Clint Eastwood's Daughter Francesca Eastwood Arrested for Domestic Violence
Ranking
- FanDuel Sports Network regional channels will be available as add-on subscription on Prime Video
- Ex-husband of ‘Real Housewives’ star gets seven years for hiring mobster to assault her boyfriend
- Supporting Children's Education: Mark's Path of Philanthropy
- The Real Housewives of Potomac's Season 9 Taglines Are Here
- DWTS’ Sasha Farber and Jenn Tran Prove They're Closer Than Ever Amid Romance Rumors
- Jury seated for Indiana trial of suspect in 2017 killings of 2 teen girls
- Camille Kostek Shares How Rob Gronkowski's BFF Tom Brady Remains in the Family
- Small business disaster loan program is out of money until Congress approves new funds
Recommendation
-
Tennessee fugitive accused of killing a man and lying about a bear chase is caught in South Carolina
-
Idaho will begin using deep veins as backup for lethal injection executions, officials say
-
Al Pacino texts 1-year-old son from 'time to time,' says it's 'fun' being a dad at 84
-
FEMA resumes door-to-door visits in North Carolina after threats tied to disinformation
-
UConn, Kansas State among five women's college basketball games to watch this weekend
-
New Report Condemns Increasing Violence and Legal Retaliation Against Environmental Activists
-
'In da clurb, we all fam' social media trend: What is it and where did it come from?
-
French fry demand dips; McDonald's top supplier closes plant, cuts 4% of workforce