Meta Stock Jumps After Strong Q1 Earnings and Higher AI Spending Outlook

Meta Platforms Inc. (NASDAQ: META) surged over 4% in after-hours trading Wednesday after reporting stronger-than-expected first-quarter earnings and raising its full-year capital expenditure outlook, signaling continued robust investment in artificial intelligence.

For the quarter ended March 31, 2025, Meta posted earnings of $6.43 per share on revenue of $42.31 billion, surpassing Wall Street expectations of $5.24 EPS and $41.48 billion in revenue, according to Investing.com. The company’s user engagement also saw steady growth, with average family daily active people (DAP) climbing 5% year-over-year to 3.43 billion in March.

Meta’s Q2 2025 revenue guidance came in at $42.5 billion to $45.5 billion, ahead of analysts’ estimates of $43.81 billion, reinforcing investor confidence amid broader concerns about AI demand saturation. The tech giant also revised its full-year capital expenditure forecast to a range of $64 billion to $72 billion, up from the prior $60 billion to $65 billion. This increase underscores Meta’s ongoing push to scale its AI infrastructure and product development.

Meanwhile, the company trimmed its total expense outlook for 2025 to between $113 billion and $118 billion, slightly lower than its previous forecast of $114 billion to $119 billion. This move may help ease investor concerns around cost discipline while maintaining growth in strategic areas like AI and metaverse initiatives.

Meta’s strong earnings beat and bullish guidance on AI investments highlight its resilience and leadership in the tech sector. As demand for AI infrastructure and services continues to grow, Meta’s increased capex signals long-term confidence in monetizing future technologies. Investors responded positively, pushing META shares higher after the bell.