Meta reports revenue surge as AI attracts advertisers

Meta Platforms, the parent company of Facebook, WhatsApp, and Instagram, has exceeded analysts’ expectations with its first-quarter revenue results, driven by the increasing integration of artificial intelligence into its advertising tools. The tech giant reported $42.31 billion in revenue, surpassing the anticipated $41.40 billion. This surge demonstrates the robust appeal of its platforms for advertisers amidst economic concerns.

The company also revised its forecast for total expenses in 2025, lowering the anticipated range to $113 billion–$118 billion, down from the previously estimated $114 billion–$119 billion. Despite this, Meta increased its projected capital expenditures to between $64 billion–$72 billion, reflecting its expanded investments in AI-related infrastructure and data centres to maintain its competitive edge.

Meta’s net income grew markedly by 35 per cent, reaching $16.64 billion compared to $12.37 billion in the same period last year. These results have boosted investor confidence, with Meta’s share price rising by 4.3 per cent in after-hours trading, pushing its valuation to $1.4 trillion. Despite facing economic uncertainties and tightening marketing budgets, Meta’s extensive audience base continues to make it a reliable choice for global advertisers.

In its earnings release, Meta highlighted that additional expenditures would focus on infrastructure hardware and critical advancements in its AI capabilities. The firm reiterated its commitment to strengthening its advertising tools and improving user engagement through these technological developments.

While Meta celebrates these achievements, it remains embroiled in a high-stakes legal case in Washington. The US Federal Trade Commission is currently contesting the company’s acquisitions of Instagram and WhatsApp, seeking to unwind these landmark deals. Though the trial introduces regulatory headwinds, Meta’s financial performance underscores its strong positioning in the tech space.

Meta’s dedication to AI and maintaining relevance in the rapidly evolving digital advertising landscape suggests it is prepared to navigate both competitive and legal challenges while continuing to deliver value for its stakeholders.