Meta Platforms reported its first-quarter revenue yesterday and even as it shared better-than-expected income, the company’s shares dropped 15% in extended trading after it disappointed investors with forecasts of higher expenses and lighter revenue.
The tech giant shared its income rose more than 27% compared to a year before, to $36.5 billion.
The dip was caused when Meta shared its plans to increase its spending levels, raising the high end of its full-year capital expenditure guidance to support its artificial intelligence roadmap.
Meta’s recent AI advancements, like the Llama 3 model, aid its ad-targeting capabilities, compensating for revenue losses from privacy changes by Apple.
CEO Mark Zuckerberg emphasized the tech giant’s commitment to building top-tier AI services, aiming for quality and widespread usage.