Meta, the parent company of Facebook and Instagram, reported a significant increase in profit for the first quarter of the year, with earnings more than doubling to $12.37 billion, or $4.71 per share. This growth was driven by higher advertising revenue and a 6% increase in the average price of ads on its platforms. Revenue also saw a substantial rise of 27%, reaching $36.46 billion.

Despite these impressive results, Meta's shares took a hit in after-hours trading following lukewarm revenue guidance for the current quarter. The company expects revenue to be between $36.5 billion and $39 billion, below analysts' expectations of $38.25 billion. Additionally, Meta announced that its 2024 capital expenses are projected to be higher than previously anticipated due to investments in artificial intelligence, with expenses estimated to be in the range of $35 billion to $40 billion.

Thomas Monteiro, a senior analyst at Investing.com, commented on Meta's earnings, noting that while the company surpassed estimates in all key metrics, the lowering revenue expectations for the second quarter had a negative impact on investor sentiment. This contrasted with Tesla's recent performance, highlighting the current level of mistrust among investors regarding future projections.

Despite the financial concerns, Meta's user base continued to grow, with 3.24 billion users on average for March across its "family of apps," including Facebook, Instagram, WhatsApp, and Messenger. This marked a 7% increase year-over-year. However, Meta's shares fell almost 16% in after-hours trading, reflecting the market's reaction to the company's revenue outlook.