Facebook’s results are causing panic | Meta dropped from 493.5 to a shocking 399 after the market closed, predicting that capital expenditures will increase this year and will be even greater next year – Hong Kong Economic Daily – Real-time News Channel – Market Finance – Stock Market

Meta, the parent company of Facebook (US: META), announced in its first-quarter performance report that it will increase spending on AI research and development and continue to suffer losses in its virtual product business. Even though its performance exceeded expectations, its stock price was recognized by the investment community and rose by 40% during the year. However, the investment community Worrying about spending is a huge pitfall, because next year’s spending is forecast to be even greater, and the stock price plunged 19% or close to US$100 after the market closed, reaching a low of US$399.02, falling below the US$400 mark.

• Meta performance beat expectations:
• First-quarter earnings per share: $4.71; expected $4.32
• Revenue: $36.46 billion; $36.16 billion expected

Meta pointed out that it expects full-year capital expenditures to be between US$35 billion and US$40 billion, more than the previously expected US$30 billion to US$37 billion, and will continue to accelerate infrastructure investment to support artificial intelligence (AI) roadmap, although the company will not provide a roadmap. Guidance after 2024, but capital expenditures are expected to continue to increase next year and we will actively invest in artificial intelligence research and product development.

Reality Labs operating losses expected to increase

Due to rising infrastructure and legal costs, total expenditures are expected to be between US$96 billion and US$99 billion in 2024, an adjustment from the previous forecast of US$94 billion to US$99 billion. As for Reality Labs, which develops the virtual product market , still expects operating losses to increase significantly from the same period last year due to Meta’s ongoing product development and investments to further expand its ecosystem.

In the three months ended March, Meta’s first-quarter revenue was US$36.455 billion, an increase of 27% year-on-year, exceeding the expected US$36.16 billion. Operating profit was US$13.818 billion, an increase of 91%. Gross profit margin increased from 25% to 38%. Net profit US$12.369 billion, a surge of 117%, and earnings per share of US$4.71, exceeding the expected US$4.32.

Meta expects second-quarter revenue to range from $36.5 to $39 billion.

In terms of operating data, daily active users were US$3.24 billion, a year-on-year increase of 7%, the number of ad impressions increased by 20%, the average price per ad increased by 6%, capital expenditures were US$6.72 billion, stock repurchases amounted to US$14.64 billion, and dividends The amount paid was $1.27 billion. The number of employees was 69,329, a decrease of 10% year-on-year.

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