Meta Rises 6% on Strong Earnings Despite Weak Chinese Ad Spending

Meta shares surged following better-than-expected financial results,
while Nvidia’s CEO noted that China is closely catching up with the U.S. in the AI race, despite ongoing trade tensions.

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Meta

Meta jumps 6.5% after strong Q1 results, despite warnings over declining Chinese ad revenue

Meta’s stock rose by more than 6% in pre-market trading on Thursday,
following the release of robust Q1 2025 earnings that beat Wall Street expectations.
The rally was fueled by a significant increase in ad revenue and a rise in daily active users.
The stock climbed to $584.6, after closing the previous session lower.

The company reported $42.3 billion in revenue, marking a 16% year-over-year increase,
while earnings per share (EPS) jumped 36% to $6.43. Additionally,
daily active users grew to 3.43 billion, surpassing analysts’ forecasts.

Despite the positive results, CFO Susan Li cautioned that
Chinese retail advertisers have started to scale back spending on Facebook and Instagram,
due to recent trade tensions linked to President Donald Trump’s policies—a factor that could weigh on ad performance in upcoming quarters.

China

Nvidia CEO: China Not Far Behind in AI, Huawei Among World’s Strongest Tech Firms

Jensen Huang, CEO of Nvidia, stated that China is not far behind the U.S. in the race for AI dominance,
describing the gap as minimal.
Speaking at a tech conference in Washington, Huang praised Huawei,
calling it one of the most powerful technology companies globally—particularly in computing and network infrastructure,
both of which are foundational to AI development.

Huang added that Huawei has made remarkable progress in recent years and expressed hope
that Nvidia will soon begin manufacturing AI hardware in the U.S.,
hinting at an upcoming partnership with Foxconn to assemble servers in Houston.

Meta Rises 6% on Strong Earnings Despite Weak Chinese Ad Spending

Meta Rises 6% on Strong Earnings Despite Weak Chinese

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