Meta reported $42 billion in revenue for the first quarter of 2025, with a 16% year-over-year increase that surpassed analysts’ expectations. Net income for the January–March period reached $16.6 billion, sending shares up by more than 4%. These results helped ease concerns that tariffs introduced by President Donald Trump would impact Meta’s international digital advertising business.
Meta’s shares had previously been among the most affected since the announcement of new tariff plans. The company’s business heavily depends on digital advertising, and it has increasingly relied on Chinese advertisers aiming to reach U.S. audiences. The first-quarter performance, however, showed the strength and adaptability of Meta’s model, even amid trade tensions between the U.S. and China.
Although Trump has renegotiated some tariffs with other nations and shown openness to talks with China, duties currently stand at 145%. Analysts are beginning to note a possible slowdown in ad spending. This week, Snap’s shares dropped after its parent company reported challenges this quarter and declined to issue a revenue forecast due to market volatility.
AI Expansion and Developer Conference
Meta continues to prioritize its investment in artificial intelligence. The company has planned up to $65 billion in capital expenditures to support AI development. Key initiatives include its Meta AI chatbot and the open-source Llama models. These efforts are part of Meta’s broader strategy to position itself as a leader in the AI space.
On Tuesday, Meta hosted its first AI developer conference, reminds NIXSOLUTIONS. The company introduced a standalone app for its AI assistant, targeting 1 billion users by year-end, and announced several new tools for developers. A notable moment was a live on-stage conversation between Meta CEO Mark Zuckerberg and Microsoft CEO Satya Nadella. We’ll keep you updated as more integrations and releases are announced.
Antitrust Lawsuit and Future Implications
Meanwhile, Meta is also navigating a major antitrust lawsuit underway in Washington. The U.S. Federal Trade Commission (FTC) claims Meta holds an illegal monopoly in social media and is seeking the separation of Instagram and WhatsApp. Zuckerberg argued that Meta’s ownership has helped both platforms grow more than they would have independently.
The company also reported a 6% increase in its daily active user base, now reaching 3.43 billion. Before the trial began, Zuckerberg attempted to negotiate a settlement with Trump, but the deal never materialized. If the court supports the FTC’s claims, the outcome could significantly reshape Meta’s structure.