Launch of the AI investment cycle

Meta reported 1Q24 results: total revenue grew by 27% YoY to US$36.5bn, in line with consensus estimate of US$36.2bn; net income was up 117% YoY to US$12.4bn, also in line with consensus estimate (US$12.2bn). For 2Q24, management guides total revenue to increase by 14-22% YoY to US$36.5- 39.0bn (vs. consensus estimate of US$38.3bn), with growth rate normalizing as the base effect wanes. Looking ahead, Meta expects to start a multi-year investment cycle to build full-scale AI capabilities and enhance monetiz ...