Meta’s stock price slumped by 15% even after they announced healthy first-quarter results. Sales and net income numbers outperformed the averages forecasted by analysts.
Nevertheless, Meta’s investors were not thrilled when it decreased its sales prediction for the next quarter.
The firm’s revenue increased by 27% to roughly $29.0 billion, virtually quadrupling its net income to $12.37 billion. Lower sales and marketing expenditures resulted in lower expenses and higher operating margins, which led to the company’s profit figures growing by 16%.
Furthermore, Meta predicts that for the second quarter of the year, sales will range from $36.5 billion to $41 billion. Moreover, the firm aims to allocate $35 billion to $40 billion for capital expenditures in 2024, where a significant proportion of the outlay will be dedicated to AI development.
The concerns of investors extended to the company’s Reality Labs group, which reports losses day after day. Reality Labs reported sales of $440 million and losses amounting to $3.85 billion in Q1.
Yet, there are still some drawbacks for Meta because the company’s CEO Mark Zuckerberg still needs to convince people that the Metaverse will be the next wave of communication.
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