Meta reported Q1 revenue growth of 33% year over year, reaching more than $56 billion. Gross margins remained near 82%. Average revenue per user increased 28.2% to $15.82. On the earnings call, Zuckerberg responded to questions about measuring return on investment over the next 12 to 24 months by framing it as a technical question and pointing to Meta’s approach of scaling the product first and monetizing later. BlackRock’s outlook characterizes the AI boom as initially inflationary and later deflationary. Early AI adoption is driven by hyperscalers competing for chips, power, cooling, and data center capacity rather than immediate productivity gains.
"Meta (NASDAQ:META) delivered a Q1 result that most managers would frame and hang on the wall. Revenue surged 33% year-over-year, passing $56 billion. Gross margins held at nearly 82%, while average revenue per user climbed 28.2% to hit $15.82."
"Zuckerberg's response on the earnings call didn't exactly calm nerves. When asked about milestones he's watching to measure the return on investment over the next 12 to 24 months, he called it "a very technical question" before reverting to Meta's historical playbook - scale the product first, then monetize later."
"According to BlackRock's recent outlook, the AI boom will initially be inflationary before eventually turning deflationary. The early phase of AI adoption isn't about productivity gains yet - it's about hyperscalers running a global bidding war for chips, power, cooling systems, and data centers. Meta is now living inside that inflation cycle."
Read at Benzinga
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