Tens of thousands of UK savers with exposure to US technology stocks, whether through ISAs, SIPPs, or global equity funds, will be heartened by Meta Platforms Inc's (NASDAQ:META, ETR:FB2A, SWX:FB) stronger-than-expected first-quarter results, released after-hours Wednesday.
Shares in the social media giant are on course to open more than 5% higher on Thursday, providing a much-needed boost after a rocky start to the year for the so-called ‘Magnificent Seven’.
Why Meta matters to UK private investors
Many British private investors, either directly or via holdings in tech-heavy trusts such as Scottish Mortgage or global ETFs tracking the Nasdaq-100, have found themselves caught in the crossfire of a volatile US tech landscape.
Since Donald Trump returned to the White House in January, his administration’s tariff threats have reignited trade tensions, unsettling markets and raising costs for the likes of Meta, whose business depends heavily on international advertising and advanced AI infrastructure.
Meta beats Wall Street expectations on revenue and profit
Despite those headwinds, Meta delivered a comprehensive earnings and revenue beat for the three months to the end of March.
Earnings per share came in at $6.43, well above Wall Street’s forecast of $5.25, on revenue of $42.3 billion versus expectations of $41.3 billion.
That marks a notable increase from the same quarter last year, when the company posted $4.71 in earnings on $36.4 billion in sales.
Advertising strength offsets Reality Labs losses
Advertising revenue from Meta’s core business hit $41.4 billion, comfortably surpassing analysts’ estimates. Earnings per share came in at $6.43, well above Wall Street’s forecast of $5.25.
While its virtual reality division, Reality Labs, posted a $4.2 billion loss, investors shrugged off the drag, focusing instead on Meta’s confident revenue outlook for the current quarter: between $42.5 billion and $45.5 billion, compared with expectations of $44 billion.
Meta increases capital spending to fuel AI growth
The company also raised its full-year capital expenditure guidance to between $64 billion and $72 billion, up from $60 billion to $65 billion, signalling continued heavy investment in AI and data centres.
While that level of spending may weigh on short-term margins, it underlines Meta’s determination to remain at the forefront of the AI arms race; something UK investors with long-term tech exposure will watch closely.
Trump tariffs and regulatory risks remain a concern
For the broader UK retail investor, Meta’s rebound offers reassurance after what has been a bruising 102 days for the US tech sector.
Trump’s trade policies have threatened to disrupt supply chains, increase the cost of AI chips, and limit access to growth markets like China.
Analysts noted ahead of the results that Meta's exposure to Chinese advertisers (estimated at over 10% of total turnover) has been a source of recent weakness.
Meta shares rebound but long-term outlook remains mixed
Still, Meta’s share price, while down 8.4% year to date, has gained 25% over the past 12 months.
And with the company fighting off regulatory pressure from the US Federal Trade Commission, currently seeking to break up its ownership of Instagram and WhatsApp, the picture for UK investors remains complex but far from bleak.
For now, Meta’s results offer a reminder that even amid trade wars and legal battles, the earnings engine of Big Tech continues to turn.