The tech giant has beaten Wall Street expectations after weeks of volatility in US stocks.
Tech Giants Microsoft and Meta posted better than expected results in the first quarter of the year, offering investors some reprieve after months of turbulence unleashed by President Donald Trump’s trade war.
Meta, the parent company of Facebook and Instagram, reported net profit of $16.644 billion, or $6.43 per share, from January to March. This was an increase of 35% from the previous year.
Revenues rose 16%, closing at $423 billion, with Wall Street expectations above about $41.4 billion.
Microsoft recorded net income of $25.8 billion, or $3.46 per share, 18% year-on-year.
The company’s revenues reached $700.1 billion, up 13% year-on-year, exceeding analyst expectations.
The companies cited artificial intelligence (AI) as a major driver of growth, helping to alleviate investors’ concerns about the possibility of slowing down demand for burgeoning technologies.
Meta recently incorporated AI tools into its biggest source of revenue, the advertising business, while Microsoft has reported strong growth in its cloud computing business.
Google’s parent company Alphabet has also invested heavily in AI, reporting last week its revenues increased by $900.23 billion compared to the quarter than expected.
The results have boosted the US tech sector, where stocks have been on a roller coaster since Trump returned to the White House on January 20th.
The market value of the top seven high-tech companies, Microsoft, Meta, Nvidia, Amazon, Tesla, Apple and Alphabet, fell 24% ($4.2 trillion) in the first 100 days after Trump took office.
Trump’s tariffs, including a 145% obligation on China, have disrupted businesses and uneasy investors, who are worried about his next move after announcing a 90-day suspension on so-called “mutual” obligations targeting almost every country.
The US economy shrunk by 0.3% in the first quarter of 2025, the US Department of Commerce said Wednesday, adding to fear that the US is likely to plunge into a recession this year.
In a return call with investors, CEO Mark Zuckerberg said Meta is “suitable to navigate macroeconomic uncertainty” in recent months.
The company will release Metaai, a standalone AI app this week, and will complete the construction of the data center in 2025, spending between $64 billion and $720 billion on capital expenditures.