Meta Shares Dip On Massive AI Spending; Q1 Daily Active Users Soften On Internet Disruptions In Iran

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Mark Zuckerberg, CEO of Meta testifies before the Senate Judiciary Committee at the Dirksen Senate Office Building on January 31, 2024 in Washington, DC. The committee heard testimony from the heads of the largest tech firms on the dangers of child sexual exploitation on social media. (Photo by Alex Wong/Getty Images)

Instagram and Facebook parent Meta beat on the top and bottom lines last quarter but the stock dipped more than 5% in late trading Wednesday on market jitters over expanding capex, which the company anticipates in the $125 billion-$145 billion range this year.

That’s up from its previous guidance of $115 billion-$135 billion and includes data centers, higher components pricing and more as it competes again bigger rivals in the space.

Its key user metric, daily active people (or DAP), of 3.56 billion on average for March was up 4% year-over-year but down slightly from the previous quarter. Meta said that was due to internet disruptions in Iran as well as a restriction on access to WhatsApp in Russia.

Meta’s net income jumped 61% to $26.1 billion on revenue, which is mostly advertising, up 33% to $56.3 billion.

More to come