Meta Stock ($META) Falls Over 10%: As Meta Platforms (META) provided weak guidance and raised the lower end of its projected expenses, shares fell over 12% in after-hours trading Wednesday.
Analysts expected $38.39 billion, at the higher end of Meta’s range, for the second quarter, according to Visible Alpha estimates.
BREAKING: Meta stock, $META, falls over 10% despite reporting stronger than expected Q1 2024 earnings.
Meta reported quarterly revenue of $36.5 billion and EPS of $4.71, both of which were above expectations.
Even with a large beat, the stock is now down 17% from its recent all… pic.twitter.com/EjsFlfwT9S
— The Kobeissi Letter (@KobeissiLetter) April 24, 2024
Moreover, Meta expects total expenses in 2024 to be between $96 billion and $99 billion, up from $94 billion to $99 billion in 2019.
It updated its capital expenditure guidance for the full year to $35 billion to $40 billion due to “infrastructure investments” for artificial intelligence (AI).
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Revenue increased 27% to $36.46 billion in the first quarter of 2024.
The company beat analysts’ estimates for net income and diluted earnings per share (EPS).
Meta’s revenue comes primarily from advertising, so investors and analysts have watched its growth closely. Meta has also experimented with artificial intelligence tools to help advertisers target their ads better.
Meta announced its AI assistant for Whatsapp, Instagram, and Facebook in less than a week.
Meta shares were down 12.1% at $433.80 at 4:50 p.m. ET Wednesday, but they have gained over 22% since the year began.
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