Meta reports Q1 earnings amid AI ambitions, tariff pressures

Meta and other Big Tech companies are under scrutiny as they report earnings this week, with investors closely watching how AI spending and President Trump's tariff policies may impact future growth. Meta is pressing ahead with ambitious AI infrastructure investments, planning $60–65 billion in capital expenditures, despite its share price dropping and ad revenue growth slowing due to tariff pressures and reduced spending from Chinese advertisers. CEO Mark Zuckerberg has outlined a dual strategy for monetizing AI, offering both free, ad-supported services and premium paid tiers for more compute-intensive applications. While analysts expect Meta to maintain or even raise its AI spending, tariffs could push costs higher and add risk to future profitability. Microsoft, Amazon, and Apple also face tariff-related uncertainties, but analysts remain optimistic about their long-term prospects, especially as AI becomes a larger part of IT budgets. Overall, investors are looking for signs that AI investments are driving sustainable growth despite economic and policy headwinds.