Results for: Revenue Forecast

Meta Platforms, the parent company of Facebook, reported strong first quarter earnings that surpassed market expectations. However, its shares plunged 15% in after-hours trading due to weaker-than-expected revenue guidance and increased spending on artificial intelligence (AI). The company’s revenue came in at $36.46 billion, representing a 27% increase year-over-year, while its earnings per share were $4.71, beating estimates. Meta’s advertising revenue remained a primary driver for sales, growing 27% to $35.64 billion. However, its Metaverse division, Reality Labs, continued to operate at a loss of $3.85 billion. For the second quarter, Meta provided weaker-than-anticipated revenue guidance, with an expected range between $36.5 and $39 billion, falling short of analysts’ forecasts. The company plans to increase its spending on AI projects and data center infrastructure, with its full-year 2024 capital expenditures estimated to be in the range of $35 billion to $40 billion. Meta’s CEO, Mark Zuckerberg, emphasized the company’s renewed focus on AI development and its ambition to compete with rivals like Microsoft and Alphabet in the AI race. The company’s recent launch of its Meta AI platform and its partnership with hardware companies for its AR headsets are seen as significant steps in this direction.

Meta Platforms shares experienced a significant decline in extended trade following disappointing projections of increased expenses and lower-than-anticipated revenue. This marks the company’s second largest single-day stock value loss, surpassing the record $232 billion loss incurred on February 3, 2022. The company’s revenue forecast for the April-June period fell short of analysts’ estimates, casting a shadow over future growth prospects. Meta, the parent company of Facebook and Instagram, attributed the expense increases to investments in artificial intelligence (AI) products and the necessary computing infrastructure. These expenses are expected to continue rising in the coming year, with total expenses projected to reach $96 billion-$99 billion in 2024, up from the previous forecast of $94 billion-$99 billion. Despite the challenges, Meta’s first-quarter results showed a revenue increase of 27% to $36.5 billion and a significant profit increase, with earnings reaching $12.37 billion or $4.71 per share. The company’s daily active users (DAP) also grew by 7%, indicating a steady user base.

Meta Platforms’ stock price plunged by 10% after the company announced a lower-than-expected revenue forecast for the second quarter. Meta expects revenue to be between $36.5 billion and $39 billion, compared to analysts’ predictions of $38.3 billion. This disappointing forecast reflects a potential slowdown in revenue growth due to the limited impact of new AI tools and increased expenses for supporting these investments. Meta also raised its spending projections for this year, including capital expenditure and total expenses.

JetBlue Airways’ stock value dropped significantly after the airline announced a reduced revenue projection for 2024. The carrier anticipated a potential revenue decline of 10.5% in the second quarter, exceeding analysts’ expectations. For the entire year, JetBlue predicted a low single-digit revenue drop, contrasting its previous forecast of flat sales. In an effort to reduce costs, the airline has eliminated unprofitable routes and prioritized those with stable demand and premium seat sales. The recent termination of its merger agreement with Spirit Airlines and market pressures have added to the company’s challenges.