Investing.com – Meta Platforms reported Wednesday softer revenue guidance for the current quarter as the social media giant looks to ramp-up spending by more than previously expected to cash in on artificial intelligence boom.
Meta Platforms Inc (NASDAQ:) fell more than 10% in afterhours following the news.
For Q2, the company guided total revenue to be in the range of $36.5B to $39B, or $37.75B at the midpoint, missing estimates of $38.3B.
The weaker-than-expected revenue outlook comes as the company now expects full-year 2024 capital expenditures in the range of $35B to $40B, up from a prior range of $30B to $37B as the company said it will “continue to accelerate our infrastructure investments to support our artificial intelligence roadmap.”
The weaker guidance and ramp up in spending offset Q1 results that beat analyst estimates.
For the three months ended Mar. 31, Meta adjusted earnings of $4.71 per share on revenue of $36.46 billion. Analysts polled by Investing.com anticipated EPS of $4.32 on revenue of $36.14B.