A 15% decline in Meta’s stock price occurred even after the company reported positive first-quarter earnings. Figures for sales and net profits exceeded analyst expectation averages.
The company’s net income of $12.37 billion nearly quadrupled as a result of a 27% increase in revenue to over $29.0 billion. The company’s profit statistics increased by 16% as a result of fewer expenses and higher operating margins brought about by lower sales and marketing expenditures.
However, when Meta lowered its sales forecast for the upcoming quarter, investors were not overjoyed.
Investors were also concerned about the company’s Reality Labs division, which consistently generates losses. In Q1, Reality Labs reported $440 million in sales and $3.85 billion in losses.
In addition, Meta projects that revenues will be between $36.5 billion and $41 billion in the second quarter of this year. In addition, the company plans to spend between $35 billion and $40 billion on capital projects by 2024, with a large amount of the amount going toward AI research and development.
However, there are still certain disadvantages for Meta, as its CEO, Mark Zuckerberg, needs to continue persuading people that the Metaverse represents the future of communication.
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