Meta is about to release its first quarter financial report, showcasing its AI strategy results and market competitiveness.Privacy litigation and European regulation will be key challenges for Meta in the future. Experts suggest that investors pay attention to Meta's long-term strategy and its response to regulatory changes.

Financial report outlook

Meta is about to release its first quarter financial report, with market expectations for earnings per share of $4.32 and revenue of $36.1 billion, a significant increase from the same period last year. Last year, Meta's earnings per share were $2.20 and revenue was $28.6 billion.

Investors and analysts generally expect this to be a strong financial report, but are also concerned that the market may have already reflected these positive factors in advance.

AI Strategy and Competition

The large-scale language model Llama 3 launched by Meta has been integrated into its AI system and will be applied to all Meta applications, including Facebook, Instagram, and WhatsApp. This strategy demonstrates Meta's ambition in the AI field and its determination to enhance product functionality. However, Amazon and Alphabet are also actively expanding their AI business, creating a fierce competitive situation.

Technology and market response

Despite Meta's outstanding performance in AI and revenue growth, the stock market's response to technology stocks remains cautious. Nvidia's stock price fell 14% last week, indicating market volatility and uncertainty in technology stocks.

In addition, privacy complaints and regulatory changes in Europe may affect Meta's business operations in the European market, which requires close attention.