The median sales forecast for the second quarter announced by U.S. company Meta Platforms on the 24th was lower than market expectations. Photographed on the 22nd (2024 Reuters/Annegret Hilse)
Revenue estimates for the second quarter ranged from $36.5 billion to $39 billion, with the median estimate at $37.8 billion, lower than market expectations of $38.3 billion.
At the same time, it revised its 2024 cost outlook due to significant spending on new AI products and related infrastructure expansion.
The forecast for capital investment is $30 billion to $40 billion. Previous expectations were for $35 billion to $37 billion. The total cost is expected to be between $96 billion and $99 billion. Previously, it was between $94 billion and $99 billion.
“Our investment will grow as we focus on AI before we start generating revenue from new products,” CEO Mark Zuckerberg said on a conference call with analysts.
“Investors are skeptical about expanding AI investments, some of which can take years to recoup,” said Jasmine Enberg, an analyst at Insider Intelligence.
The company announced its first quarter results at the same time, with sales of $36.5 billion, almost in line with market expectations of $36.2 billion.
Daily active users (DAP) using any of its Facebook, Instagram, Messenger or WhatsApp services increased by 7%. Growth slowed from the 8% increase in the previous quarter.
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