Meta announced on Wednesday its expectation for strong growth in advertising revenue in the upcoming months, even as global economic pressures from tariffs create uncertainty.
The Silicon Valley giant, owner of Facebook, Instagram, and WhatsApp, reported increased revenue and profits for the first quarter, powered largely by advertising on Instagram and Facebook. However, the company also noted the need to closely observe the evolving regulatory environment, including ongoing legal challenges in both the European Union and the United States that could have a substantial impact on its principal operations.
For the first quarter, Meta recorded revenue of $42.3 billion, marking a 16 percent increase year-over-year and exceeding analyst expectations of $41.3 billion, according to market data. Net profit surged by 35 percent to $16.6 billion from $12.4 billion the previous year, surpassing the predicted $13.6 billion.
Looking ahead to the current quarter, Meta forecasts revenue between $42.5 billion and $45.5 billion, with the upper range exceeding Wall Street’s estimate of $43.8 billion. Following the announcement, Meta's stock price climbed more than 5 percent in after-hours trading.
“We’ve begun the year on a strong note, with our community continuing to expand and our business performing well,” stated Meta’s CEO, Mark Zuckerberg.
Meta’s robust performance in recent years has been supported by its strategic investments in artificial intelligence, which enhance the personalization of posts, videos, and advertisements for users. These advancements have contributed to increased user engagement and more effective ad targeting.
