Meta Q1 Revenue Surges 27% to $36.5B but AI Investments Spook Investors Despite Doubled Profits

Meta reported financial performance for the first quarter of 2023, with revenue reaching $36.5 billion, marking a 27% increase from the previous year. Profits doubled, reaching $12.4 billion. However, Meta’s increased investments in artificial intelligence (A.I.) are leading to higher costs, with plans to spend between $35 billion to $40 billion on A.I. infrastructure this year. Despite the strong first-quarter performance, Meta’s disappointing Q2 revenue projections and increased A.I. spending have caused uncertainty among investors, resulting in a significant decline in Meta’s stock price.

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