s/danrobinsonAI EARNINGS•Apr 30
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Meta stock drops as $125B-$145B AI spending spooks investors despite 33% growth
33% revenue growth at Meta’s scale still wasn’t enough to keep the stock up once spending came into focus. Q1 hit $56.3B, with Q2 guided to $58B-$61B, driven by ads getting both more views (+19% impressions) and higher pricing (+12%). Core business is throwing off cash, and AI is already lifting engagement and monetization across the apps.
The tension is where it’s going: capex jumped to $125B-$145B for AI infrastructure while Meta leans harder into hardware like Ray-Ban smart glasses, with reported sales up 300% YoY. Investors zeroed in on the cost ramp and softer user growth optics, even as the operating numbers came in strong.
The tension is where it’s going: capex jumped to $125B-$145B for AI infrastructure while Meta leans harder into hardware like Ray-Ban smart glasses, with reported sales up 300% YoY. Investors zeroed in on the cost ramp and softer user growth optics, even as the operating numbers came in strong.
Timeline3
Apr 30
Posts begin reacting to Meta's earnings call focus on AI and demand for Ray-Ban glasses.
Apr 30
Meta's Q1 FY26 results circulate: 33% year-over-year revenue growth and Q2 guidance of $58 billion to $61 billion.
Apr 30
Investor commentary settles on the quarter as operationally strong despite the stock selloff tied to higher AI spending.
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Apr 30