Meta shares fall 9.5% after earnings miss despite ad revenue beat
Meta reported earnings per share below expectations, leading to a 9.5% drop in its stock, while advertising revenue rose 27% and slightly exceeded forecasts.
Meta's quarterly results showed advertising revenue of $59.36 billion, up 27% year-over-year and modestly above analysts' $59.07 billion estimate. Ad impressions increased 14% and the average price per ad rose 12%.
The company said its investment in artificial-intelligence infrastructure is enhancing engagement across Instagram, WhatsApp, Facebook and Threads. CEO Mark Zuckerberg said, "AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities. The results are already showing, and I'm optimistic about the potential ahead."
Meta forecast capital expenditures of $130 billion to $145 billion for the year, a slight narrowing of its prior range and close to Wall Street's median estimate of $135.79 billion, according to CFO Susan Li.
Despite the revenue beat, earnings per share fell short of expectations, prompting the company's stock to decline 9.5% in after-hours trading.