Meta, the parent company of popular social media platforms like Facebook, Instagram, WhatsApp, and Messenger, reported a significant increase in revenue and profit in the first quarter of the year. The company’s revenue rose by 27 percent to $36.5 billion, surpassing Wall Street estimates, while its profit more than doubled to $12.4 billion.
Mark Zuckerberg, Meta’s chief executive, attributed the strong performance to the company’s artificial intelligence efforts and the healthy growth across its apps. However, Meta announced that it planned to increase its spending on infrastructure to support its A.I. initiatives, raising its forecast to $35 billion to $40 billion for the year.
The heavy investments in A.I. infrastructure, including data centers, chip designs, and research and development costs, caused some concern among investors. Meta’s stock price fell more than 11 percent in after-hours trading following the announcement of lower-than-expected revenue projections for the second quarter.
Despite the challenges, Meta has been positioning itself to capitalize on the growing interest in artificial intelligence. The company has made significant investments in engineers, infrastructure, and graphics processing units to drive A.I. advancements and improve its advertising systems.
Additionally, Meta has been focusing on developing A.I.-powered products across its platforms, from search tools to smart glasses. The company’s hardware division, Reality Labs, has been investing heavily in virtual and augmented reality technology to support Mr. Zuckerberg’s vision of the metaverse.
After facing challenges in the digital advertising market in 2022, Meta has rebounded with a surge in revenue, driven by a return of users to its platforms. The company’s strategic investments in artificial intelligence and virtual reality technology are expected to drive future growth and innovation.
