Facebook parent Meta posted solid quarterly financials today with revenue and EPS beating Wall Street expectations, but investors dinged the stock on high expenses and lower than anticipated revenue for the current quarter.
What Meta calls “Family daily active people” or DAP, rose 7% to 3.24 billion for the three months ended in March. The company also owns Instagram and WhatsApp.
Revenue rose 27% to $36.46 billion for the quarter. Net income of $12.4 billion was way up from $5.7 billion the year before.
The company’s numbers hit the same day that President Biden signed into a law legislation that will make life difficult for giant rival TikTok, whose Chinese parent has about nine months to divest the social media network or potentially see it banned from U.S. app stores. This is shaping up to be a massive legal battle with potential good news for rivals like Meta’s Reels. CEO Mark Zuckerberg will likely be asked about it on a call starting at 5 pm ET.
AI is a big focus. “It’s been a good start to the year,” said Zuckerberg, Meta founder. “The new version of Meta AI with Llama 3 is another step towards building the world’s leading AI. We’re seeing healthy growth across our apps and we continue making steady progress building the metaverse as well.”
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