Why Meta Platforms Stock Jumped 18% in May

Core Insights - Meta Platforms experienced a significant stock increase of 18% in May, driven by better-than-expected earnings and positive developments in U.S.-China trade relations [1][3][6] Financial Performance - In Q1, Meta reported a revenue increase of 16% to $42.3 billion, surpassing estimates of $41.4 billion [4] - Earnings per share (EPS) rose by 37% to $6.43, exceeding the consensus estimate of $5.22 [4] - The company provided optimistic guidance for Q2, forecasting revenue between $42.5 billion and $45.5 billion, while also reducing its full-year expense guidance by $1 billion [5] Market Dynamics - The stock gained 8% on May 12 following an agreement between the U.S. and China to temporarily lower tariff rates, reflecting its sensitivity to macroeconomic conditions [6] - Meta's stock performance may also benefit from challenges faced by rival Alphabet, particularly in the digital advertising space [8] Future Outlook - Despite potential economic challenges, Meta's strong Q2 guidance and advancements in AI position the company favorably for continued growth [9]