Meta Reports $42B Q1 Revenue, Faces Regulatory Challenges

Meta reported strong first-quarter earnings, with revenue rising 16% year-over-year to $42.3 billion and net income increasing 35% to $16.6 billion, exceeding analyst expectations. Earnings per share reached $6.43, and daily active users across Meta's platforms topped 3.4 billion. The company credited its robust performance to increased ad impressions, higher ad prices, and ongoing investments in artificial intelligence and data centers. Despite these results, Meta faces challenges ahead, including regulatory scrutiny in Europe—particularly concerning its advertising model and messaging platforms—and uncertainty around ad spend from Asia-based ecommerce exporters. The company also raised its capital expenditure guidance to support AI initiatives, while warning that European regulations could significantly impact future business. After the earnings release, Meta's stock saw mixed movement, initially rising in after-hours trading but facing ongoing volatility tied to regulatory and market sentiment.