Meta's Q1 revenue jumps 33% but stock dips on high spending concerns

Meta Platforms reported a strong 33% revenue growth in Q1, driven by robust ad growth and internal AI initiatives. Despite this, the stock fell due to market worries over high capital expenditures and losses from its Reality Labs division. Meta's operating margins remain healthy at 41%, but the market undervalues the company because it lacks an external AI cloud business. The stock trades at 14.5 times 2027 adjusted EPS, reflecting investor caution about AI prospects.