(Reuters) -Meta Platforms said on Wednesday it expects overall expenses this year to be higher than it previously forecast as the Facebook (NASDAQ:) 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.
