Meta more than doubles Q1 profit but revenue guidance pulls shares down after-hours

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.

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.

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Meta to Add 'Made with AI' Label to Content on Instagram and FacebookMeta is updating its AI-generated content policy and will add a “Made with AI” label beginning in May, the company announced. The policy will apply to content on Instagram, Facebook, and Threads. Acknowledging that its current policy is “too narrow,” Meta says it will start labeling more video, audio, and image content as being AI-generated.
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