Meta Platforms Inc. has posted impressive financial results for the first quarter of 2025, easing worries about its hefty investments in artificial intelligence. The company's revenue jumped 16% year-over-year, reaching $42.3 billion. Net income also surged by 35% to $16.7 billion, beating analysts' expectations, as reported by the Financial Times.
Meta is pouring significant resources into AI development, a move that is beginning to pay off. The company launched several new AI products, such as the Llama 4 model, an AI assistant app, and the Llama API for developers. This has come alongside a raised capital expenditure forecast for the year to between $64 billion and $72 billion, aiming to bolster its AI efforts, particularly in data centers and hardware infrastructure.
User engagement remains strong with a 6% increase in daily active users across Meta's app family, totaling 3.43 billion, indicating robust platform interaction. Despite facing challenges like decreased advertising spending from Asian companies and regulatory hurdles, Meta maintains an optimistic outlook, with ongoing investments in AI expected to support its growth trajectory.
