Meta Platforms reports $56.3 billion in Q1 revenue, driven by AI-enhanced ad sales, but shares remain 20% below October highs.
Meta Platforms posted $56.3 billion in first-quarter revenue, a 33% year-over-year increase, fueled by AI-driven improvements in ad placement. Advertising accounted for $55 billion of the total, nearly all of the company’s quarterly earnings.
Despite strong growth, Meta’s stock trades at a discount, down over 20% from its October peak. The company’s Reality Labs division, focused on augmented and virtual reality, remains a significant loss leader, offsetting gains from its core social media business.
Investors remain cautious as Meta balances aggressive spending on future technologies with its current profitability. The stock’s valuation reflects skepticism about long-term returns from its AI and metaverse investments.