Meta shares jumped in the US after-market following the release of Q1 earnings that revealed better-than-expected EPS and revenue.
The Facebook owner’s EPS of $6.43 for the first quarter smashed estimates of $5.28 as the group shook off concerns about tariff uncertainty weighing on ad spending.
Revenue for the period came in at $42.3bn versus expectations of $41.4bn.
Perhaps the most interesting metric which supports the group’s long-term growth trajectory is the 6% uptick in daily active users. Investors will be encouraged to see the group grow its user base as its platforms enter maturity and competition from the likes of TikTok heats up.
Meta shares were 5% higher in the US premarket at the time of writing.
“Meta shares are racing higher in after-hours trading after a strong set of results – and, more importantly, a confident outlook. This was never really about the quarter just gone for Meta; all eyes were on guidance for the second quarter and capex for the full year – and neither disappointed,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“The midpoint of the revenue guide is bang in line with consensus but Meta usually hits the top end, and the big surprise was another bump to capex as Meta goes full throttle on investments in AI.
“There was a distinct lack of commentary on tariffs, so we’ll have to wait for the call to hear more. Meta is more insulated than other names in the ad space, like Snapchat, which tumbled after ditching guidance. But with about 10% of ads tied to Chinese sellers, Meta’s still got some serious skin in the game. Full-year expectations may need to be revised slightly from the 10% revenue growth currently priced in, but Meta has some levers to pull in other areas if it needs to limit the impact on profits.”