Meta exceeded Wall Street's expectations in its first-quarter earnings report on Wednesday, announcing impressive figures.
The company generated $36.46 billion in sales during the quarter, surpassing estimates and marking a 27% increase from the previous year.
Earnings per share stood at $4.71, significantly higher than the forecasted $4.32, while net income reached $12.4 billion, beating projections of $11.4 billion.
Despite the strong quarterly performance, Meta's stock plummeted as it warned of a significant slowdown in growth.
Second-quarter sales expectations of $36.5 billion to $39 billion fell short of analyst estimates, with the midpoint guidance notably below average.
Meta revised its full-year expense outlook upward, citing rising costs in its metaverse segment, which impacted investor sentiment.
Shares of Meta declined by 10% in afternoon trading, reaching around $440 per share, the lowest since February 1.
Notably, Meta primarily operates as an advertising company, with ads contributing to about 99% of its total revenues.
The company experienced a remarkable recovery in profitability after several quarters of negative year-over-year growth.
Mark Zuckerberg, Meta's CEO and major shareholder, is set to receive a substantial dividend payment, adding to his already substantial fortune, which has surged due to Meta's stock performance.