Analysts expect Meta to post a 19.6% year-over-year increase in sales, to $38.3 billion, with earnings expected to rise 57% year-over-year to $4.71 per share. The main culprit for the expected slowdown in growth is a tougher comparison against the significant revenue pickup seen in the June 2023 quarter.
Despite strong sales growth in Q1, Meta's shares dropped due to the expensive nature of AI spending. CEO Mark Zuckerberg mentioned potential capital expenditures of up to $40 billion in 2024, a significant increase from the previous year.
Analysts are keenly observing whether Meta will continue to increase its projected spending, especially in AI development. BofA Securities Analyst Justin Post suggests he does not foresee a similar surge in expenses as seen in the previous quarter.
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