(Reuters) -Meta Platforms said on Wednesday it expects overall expenses this year to be higher than it previously forecast as the Facebook parent spends heavily to roll out new AI products and bolsters the infrastructure to support them.
Shares of the company fell 10% after the bell. The company expects 2024 capital expenditure in the range of $35 billion to $40 billion, up from its earlier forecast of $30 billion to $37 billion. It also raised its total expenses forecast to $96 billion to $99 billion, up from $94 billion to $99 billion.
Meta has been updating its ad buying products with AI tools and short video formats to boost revenue growth, while also introducing AI features like a chat assistant to drive engagement on its social media properties.
Revenue rose 27% to $36.46 billion in the first quarter, beating expectations of $36.16 billion according to LSEG data.
It forecast current quarter revenue in the range of $36.5 billion to $39.0 billion, compared with expectations of $38.29 billion.
(Reporting by Yuvraj Malik in Bengaluru and Katie Paul in New York; Editing by Sriraj Kalluvila)
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