Meta Stock Surges After Strong Q1 Earnings, Increased Capex Outlook

Meta Platforms reported first-quarter earnings that exceeded analyst expectations, driving its stock price up more than 5%. The company posted revenue of $42.3 billion and earnings per share of $6.43, both surpassing forecasts, with net income rising 35% year-over-year. Meta raised its capital expenditure outlook for 2025 to between $64 billion and $72 billion, citing ongoing investments in AI and infrastructure, while trimming its overall expense forecast. Daily active users climbed to 3.43 billion, and Meta AI now serves nearly 1 billion monthly users, signaling robust engagement across platforms. Despite some pullback in ad spending from Asia-based e-commerce exporters and a continued operating loss in Reality Labs, CEO Mark Zuckerberg expressed optimism about Meta’s ability to navigate macroeconomic uncertainty. Analyst price targets for Meta vary widely, with the average suggesting continued upside potential for the stock.