Meta Q1 Profit Hits $26.8B, Shares Fall on AI Capex Rise

Meta Platforms Inc. reported stronger-than-expected first-quarter results on Wednesday, with revenue of $56.3 billion and net profit of $26.8 billion, but its shares fell more than 6 percent after the company raised its full-year capital expenditure forecast to between $125 billion and $145 billion, primarily for artificial intelligence investments.

Chief Executive Officer Mark Zuckerberg defended the spending during the earnings call, framing it as a strategic bet on technologies that will enhance user experiences. "We're making a bet on the individual things that people care about and on capabilities that will become more important in the future," Zuckerberg said. He emphasized the emerging trend of "agentic" AI, in which digital assistants perform tasks autonomously. While many such agents exist, Zuckerberg noted that few meet high quality standards. "Getting to that quality bar is more important to me than hitting a specific launch week," he said.

Zuckerberg highlighted the newly released Muse Spark model, developed by Meta's Superintelligence Lab, as a key advancement. The technology will integrate into products including smart glasses and the company's advertising...