Meta said on Wednesday that it expects overall expenses this year to be higher than anticipated as it has spent heavily to launch new artificial intelligence (AI) products and beefed up its infrastructure to support those applications.
The company’s shares fell 10% in US after-market trading.
The company forecasts capital expenditures in the range of $35 billion to $40 billion in 2024, up from its previous forecast of $30 billion to $37 billion.
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The Target also raised its total expenditure forecast to $96 billion to $99 billion, up from the $94 billion to $99 billion previously expected.
The company has been upgrading its ad buying capabilities with AI tools and short-form video formats to drive revenue growth, while also introducing AI engines like chat assistant to increase engagement across its media properties. Social.
The company’s revenue rose 27% to US$36.46 billion in the first quarter, exceeding expectations of US$36.16 billion, according to LSEG data.
Continues after advertising
Profit rose more than expected in the quarter, totaling US$ 12.369 billion or US$ 4.71 per share, in adjusted terms. FactSet analysts’ projection was for adjusted profit of $4.32. It was an increase of more than 110% compared to the same period in 2023.
CEO Mark Zuckerberg called it a good start to the year. “We are seeing healthy growth in our applications and continue to make steady progress in building the metaverse as well,” he said, in the statement to investors, highlighting advancements on the artificial intelligence (AI) front.
Target forecasts current quarter revenue to be in the range of $36.5 billion to $39.0 billion, compared to revenue expectations of $38.29 billion.
(with Reuters and Estadão Conteúdo)
Tags: Facebook owner surprises #1Q24 expense forecast share fall
