Meta Platforms (META) stock gained late Wednesday after the Facebook parent company reported first-quarter earnings and sales that beat expectations. The tech giant’s guidance for the current quarter also came in ahead of expectations despite tariff concerns. Mark Zuckerberg’s social media giant also increased its 2025 spending forecast on AI data centers.
Meta said that it earned $6.43 per share on sales of $42.3 billion for the March-ended quarter. Analysts polled by FactSet projected the Menlo Park, Calif.-based company would post adjusted earnings of $5.23 per share on sales of $41.3 billion.
↑ X NOW PLAYING Zuckerberg Is Investing Billions On AI. Why It’s A Make-Or-Break Moment For Meta. Sales increased 16% year-over-year. Earnings increased 37% to $6.43.
With tariffs from President Donald Trump taking effect this month, investors have been more focused on guidance for the June-ended quarter. Meta, in particular, faces risks from the end of a trade exemption that helped Chinese e-commerce firms ship directly to U.S. customers. Those firms are big advertisers on Facebook and Instagram.
Meta guided for $44 billion in sales for the June quarter, at the midpoint of its range. That was slightly ahead of analyst estimates for $43.8 billion in Q2 sales prior to the report.
The Facebook parent company also upped its expected capital expenditures, part of its AI push. The company told investors it expects to spend between $64 and $72 billion on capex this year, compared to a prior outlook of $60-65 billion
Meanwhile, the Facebook parent company lowered its expectations for total 2025 expenses by $1 billion to $115.5 billion at the midrange of its guidance.
“We’ve had a strong start to an important year, our community continues to grow and our business is performing very well,” Zuckerberg said in a news release. “We’re making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly actives.”
On the stock market today, Meta stock is up more than 3% at 568.76 in recent after-hours action.
More earnings coverage to come.
Meta Stock Down 6% This Year
Prior to earnings, Meta fell just under 1% in Wednesday trading. Shares have fallen 6.1% this year, compared to a 5.3% slide for the S&P 500.
Coming into the report, Meta stock had an IBD Composite Rating of 86 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
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