Goal published clearly better results in the first quarter that the market expected, transported by the sustained growth of its advertising income, and pointed out its investment objective to further accelerate the development of artificial intelligence (AI).
The net profit appears at $ 16.6 billion, 35% more in a year. Reported by share, it reached $ 6.43, far beyond the $ 5.22 projected by analysts, according to a consensus established by FOSTSET.
During the period, advertising income increased by 16% for a year. It is a less sustained pace than in the previous quarter, but much more than analysts expected (+13%).
“Benefit from economic instability”
The market is concerned about a slowdown in online advertising, caused by a degradation of economic conditions and the fear of a marked impact of customs duties imposed by Donald Trump on the commercial partners of the United States.
In this context, goal has a considerable scale effect, with its 3.43 billion daily users (+6% for a year) of one of their social networks (Facebook, Instagram and threats) or Couiers (WhatsApp and Facebook Messenger).
“The group is well located to benefit from economic instability,” said Minda Smiley, an emarketer analyst, because “advertisers will guide their budgets to platforms considered and sophisticated as Facebook and Instagram, while reducing their most modest social networks expenses.
In a position of force, the Menlo Park Group (California) was able to increase its advertising prices by 10% compared to the same period last year on average. After having reduced its workforce by more than 20,000 people in 2023 and early 2024, the group was even allowed to hire massively and saw that the number of its employees grew by 11% in one year.
During a telephone conference for the presentation of the results, the CEO Mark Zuckerberg praised the contribution of the AI, which allows the goal to “identify and better aim at the audience” that is probably interested in the product of an advertiser. In total, the billing stood at $ 42.3 billion (+16%), while analysts only took advantage of 41.3 billion.
“Financing in AI”
A sign of its ambition, Meta noticed that its investment forecasts for the current year, a range of between 64 and $ 72 billion, against 60 to 65 so far, a sum largely dedicated to the development of AI. This recovery is “a big surprise,” according to Matt Britzman, an analyst at Hargreaves Lansdown, who shows that he “throws himself thoroughly in AI”.
Investments in the great names of AI are the most observed data at this time, the market fears a possible slowdown after two disheveled years, while companies navigate.
The group was launched on Tuesday, April 29, an application dedicated to generative AI, goal AI, different from the existing platforms on Tuesday, April 29. The next day, Mark Zuckerberg said the company was going to “apply our usual product development strategy, that is, grow and then focus on income.” The goal AI application is, therefore, completely free, and must only offer payed subscriptions in a second step.
For Matt Britzman, more than good results of the quarter elapsed, the market has retained “the forecasts provided” throughout the year.
For the second quarter, goal provides for a turnover between 42.5 and $ 45.5 billion, a range whose median (44) is greater than the income expected by analysts (43.8). In electronic exchanges after the end of the New York Stock Exchange, the title won almost 4%.
“We started the year well,” said Mark Zuckerberg at the opening of the Conference of the Results Conference. “I think we are well positioned to navigate in this context of macroeconomic uncertainty.”
Source: BFM TV
