Meta Platforms has adjusted its sales in the first quarter of 2025 to be around $39.5 billion, a figure that falls short of analysts’ projections of about $41.7 billion. The first-quarter projections could hamper the company’s artificial intelligence investment plans in the remaining part of the year.
The projection is coming after the company reached an agreement to pay $25 million in a settlement with United States President Donald Trump. The settlement is in relation to a lawsuit that Trump filed after the company suspended his Facebook and Instagram accounts after the Capitol attacks on January 6. The settlement will be split between Trump’s presidential library fund, with about $3 million covering legal fees.
Meta Platforms posts Q4 2024 fiscal performance
Meta Platforms posted its Q4 2024 earnings, after an unusual delay. According to the report, the company made about $48.4 billion, outperforming analysts’ forecasts of $46.9 billion. However, the same might not be the case for its Q1 2025 earnings, as the company is expected to make between $39.5 billion and $41.8 billion, falling short of analysts’ expectations of $41.72 billion.
The slow expectations are coming after the emergence of Chinese AI startup DeepSeek entering the market. According to reports, the recently released R-1 model has outperformed several US AI firm’s models, including Meta’s Llama. While there is a massive selloff in the global market, there is an evident strain on Meta’s forward-looking ventures.
Trump’s rocky relationship with Zuckerberg
Meta CEO Mark Zuckerberg has enjoyed a strained relationship with United States President Donald Trump after the former suspended the latter’s account in 2021, leading to a lawsuit. Meta saw its shares slide by 4% after Trump said it was an enemy of the people in March. However, most people see the settlement as a step in the right direction. It would also help Zuckerberg’s quest, as he positions himself to become Trump’s AI advisor.
The latest disruption in the artificial intelligence space came after DeepSeek created its AI model, noting that it did it with about $6 million. The big research and development expenses that Meta has made in the AI space are also coming under public scrutiny.