Meta’s first quarter performance exceeded market expectations, but after-hours stock price fell 10% (comprehensive)

Delivery time2024-04-25 06:08

Second quarter forecast falls below expectations… Spending on AI infrastructure investment also increases

(San Francisco = Yonhap News) Correspondent Kim Tae-jong = Facebook’s parent company Metaplatform (hereinafter referred to as Meta) announced its first quarter earnings that exceeded market expectations on the 24th (local time). However, the stock price plummeted in after-hours trading as the second quarter forecast fell below market expectations.

Meta announced today that it recorded sales of $36.46 billion (KRW 50.2236 trillion) and earnings per share of $4.71 in the first quarter.

Sales exceeded the market forecast of $36.16 billion compiled by market research firm LSEG, and earnings per share exceeded the forecast of $4.32.

Sales soared 27% from a year ago, showing the largest growth since 2021. Net profit was $12.37 billion, more than double the $5.71 billion in the same period last year.

Meta earns most of its revenue from advertising.

Meta estimated that sales in the second quarter will range from $36.5 billion to $39 billion.

This median estimate ($37.75 billion) is an 18% increase from the same period last year, but falls short of the market forecast ($38.3 billion).

This year’s capital expenditures were also raised from the previous forecast of $30 billion to $37 billion to $35 billion to $40 billion. The company explained that this is as it continues to accelerate infrastructure investments to support its artificial intelligence (AI) roadmap.

Reality Labs, which produces the Metaverse headset that Meta is focusing on along with AI, recorded sales of $440 million, up 30% from a year ago. Operating loss decreased from a year ago ($3.99 billion), but still amounted to $3.85 billion.

Accordingly, the total loss of the Reality Lab sector since 2020 has increased to $45 billion. The total number of employees was 69,329, a 10% decrease from a year ago.

After today’s earnings announcement, Meta’s stock price is plummeting by more than 10% in after-hours trading on the New York Stock Exchange.

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2024/04/25 06:08 Sent