Meta Platforms Surprises with Strong Earnings and AI Investment Plans

Meta Platforms, the company behind Facebook and Instagram, did really well in the first part of this year, earning more money from ads than experts thought they would. This news helped calm investors who were worried about how trade tariffs could affect the economy. To support new technology like artificial intelligence (AI), Meta plans to spend a lot more money building data centers—around $64 billion to $72 billion by 2025. CEO Mark Zuckerberg wants to make these upgrades quickly so that Meta can stay ahead in the tech game.

During a call with investors, Zuckerberg explained that while most of the spending will help their main business with ads, some of it will also focus on getting ready for new AI projects. This is especially important now since some companies are cutting back on spending for tech upgrades. Meta reported earnings of $42.31 billion for the first quarter, higher than the expected $41.40 billion. They also made a profit of $6.43 per share, which was better than the predicted $5.28.

Looking ahead, Meta expects to earn between $42.5 billion to $45.5 billion in the second quarter, slightly below the average estimate of $44.01 billion. They are carefully watching how things go since the economy is still uncertain. Nearly 1 billion people use Meta’s AI tools every month, which Zuckerberg believes will help the company stay strong in these uncertain times. Meta is also using AI to make ad targeting better, which could keep their earnings strong.

Despite some advertisers cutting back, Meta’s large number of users makes it a good choice for businesses looking to reach customers. Recently, two big online stores from China, Temu and Shein, have cut their ad spending in the U.S. because of changing trade rules, which could affect Meta too. Still, in April, Meta saw many advertisers continuing to spend money, and they remain resilient even if there’s a larger drop in spending.

Meta is also dealing with some legal challenges in Europe, which could hurt their business there soon, and they have a major trial in Washington about their purchases of Instagram and WhatsApp.