What's Going On With Meta Shares Today?

Meta Platforms Inc. (NASDAQ:META) shares are trading higher on Thursday following the company's stronger-than-expected first-quarter financial results.

What To Know: The company reported revenue of $42.31 billion, exceeding analyst expectations of $41.39 billion and posted earnings per share of $6.43, which beat the $5.21 estimate. Revenue was up 16% year-over-year, continuing a trend of outperformance, with this marking the ninth consecutive quarter that Meta beat both top- and bottom-line estimates.

Key operational metrics also improved. Family daily active users reached 3.43 billion, up 6% year-over-year. Advertising impressions grew 5%, and the average price per ad rose 10%. Operating margin increased to 41%, up from 38% a year ago. Capital expenditures totaled $13.69 billion, and the company closed the quarter with over $70 billion in cash and equivalents. Headcount increased 11% year-over-year to 76,834.

Meta raised its full-year capital expenditure forecast to between $64 billion and $72 billion, up from the previous range of $60 to $65 billion, citing increased investments in data centers and infrastructure to support its AI initiatives. Meta's AI tools, including Meta AI, reportedly now serve close to one billion monthly active users. Despite the strong quarter, the company highlighted ongoing regulatory risks in the U.S. and EU that could materially affect its operations.

The company expects second-quarter revenue to fall between $42.5 billion and $45.5 billion, slightly above the consensus estimate of $44.06 billion. Full-year expenses are projected to be slightly lower than previously guided, now between $113 billion and $118 billion.

META Price Action: Meta shares closed Thursday up 4.32% at $572.21, according to Benzinga Pro.

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