Meta Platforms Inc (NASDAQ:META) shares initially popped Thursday following Nvidia Corp‘s (NASDAQ:NVDA) blowout earnings report, but have since reversed course. The stock is currently trading slightly lower as Nvidia shares roll over from session highs.
- META shares are showing limited movement. Track the latest developments here.
What To Know: Meta played a big role in aiding Nvidia's networking revenue surge, which hit $8.2 billion in the third-quarter, representing a 162% jump from last year.
Nvidia’s earnings per share of $1.30 exceeded the $1.25 forecast, and its third-quarter revenue of $57.01 billion exceeded the consensus of $54.88 billion. The company’s fourth-quarter revenue guidance of $65 billion greatly exceeded the Street’s estimate of $62.4 billion, easing fears of a potential AI bubble in early trading.
Optimism surrounding ongoing spending on AI infrastructure validates Meta’s massive spending spree on AI. However, as Nvidia shares pulled back from session highs, Meta followed, last down about 0.5%.
Separately, a Madrid court ordered Meta to pay 479 million euros ($552.48 million) to 87 Spanish news outlets, saying the company used Facebook and Instagram ads to gain an unfair competitive advantage -- and broke the European General Data Protection Regulation (GDPR) rules in the process.
The court found that Meta processed user data illegally for five years, earning more than 5.281 billion euros in Spain from online advertising. According to the judge’s ruling, competitors in the Spanish advertising market should split this money based on market share.
The decision, which is not yet final, may be appealed to the Provincial Court, and could establish a precedent for cases of a similar nature throughout the European Union.
META Price Action: Meta shares were down 0.54% at $587.18 at the time of publication on Thursday, according to Benzinga Pro.
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