Meta shares declined in after-hours trading on Wednesday following the release of first-quarter results that missed Wall Street expectations for both capital expenditures and user growth. While the social media giant posted strong revenue and profit figures, investors reacted negatively to a lower-than-anticipated increase in daily active people and reduced guidance for future spending. For the quarter, Meta reported 3.56 billion daily active people, marking a 4% year-over-year increase. This figure fell short of the 3.62 billion projected by analysts surveyed by LSEG. The company attributed a slight quarter-over-quarter decline in daily active people to internet disruptions in Iran and restricted access to WhatsApp in Russia. Financial performance remained robust, with sales rising 33% compared to the previous year. Net income reached $26.8 billion, or $10.44 per share, a significant jump from $16.6 billion, or $6.43 per share, a year earlier. However, Meta noted that the profit surge included an $8.03 billion income tax benefit linked to recent U.S. tax legislation. Without this adjustment, diluted earnings per share would have been $3.13 lower. Regarding future outlook, Meta forecasted second-quarter revenue between $58 billion and $61 billion, slightly below the analyst consensus of $59.5 billion. The report also covered capital expenditure figures that were lower than market expectations, causing investor concern amidst broader debates over AI infrastructure costs. Despite these misses, the broader technology sector continued its upward trajectory, with the Nasdaq gaining 14% for the month, marking its best performance since April 2020. Meta, alongside peers Alphabet, Amazon, and Microsoft, was among the first major tech firms to report earnings since the onset of U.S. combat operations in Iran in late February. Concerns remain regarding potential rising costs for AI data centers due to surging oil prices and supply chain disruptions stemming from the conflict. On the strategic front, Meta highlighted the recent debut of Muse Spark, its first proprietary foundation model, as a milestone. CEO Mark Zuckerberg emphasized the company's commitment to delivering personal superintelligence to billions of users. Investors are now closely watching for Zuckerberg to outline a more detailed strategy for monetizing these advanced AI capabilities. The market's mixed reaction reflects a tension between strong financial results and cautious sentiment regarding user growth trends and future capital allocation in a volatile geopolitical environment.