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Meta says retailers in China reduce digital advertising costs

This illustration, created on January 7, 2025 in Washington, Colombia District, shows the image of Mark Zuckerberg, Meta CEO, and Meta logo images.

Drew Anderra | AFP | Gets the image

Chinese online shops have reduced their Facebook and Instagram advertising costs in response to the rigid President Donald Trump’s rigid trading policy with the country.

Meta Susan Lee Leader said “Ecommerce Exporters”, based on Asia, has reduced the costs in the company on social media. Probably ending this FridaySaid Lee during Profit in the first quarter Call.

“Some of these costs were redirected to other markets, but the overall expenses for these advertisers below the level by April,” Lee said.

Trump in early April signed Executive order To stop being released from de minimis for Chinese imports that have benefited the Internet retailers like Ago And Shane. Analysts said they believe in this Theme and Shane make up the main part In China in China in China, China is $ 18.35 billion.

The volume of Meta advertising sales in the Asia-Pacific region for the first quarter amounted to $ 8.22 billion, the company reports. It was below the Wall -Rate forecasts of $ 8.42 billion.

Lee said the Meta income in the second quarter would be from $ 42.5 billion to $ 45.5 billion, which corresponded to $ 44.03 billion expectations.

“Very early, it’s hard to learn how everything will play out a quarter, and it is definitely harder to find out about it during the rest of the year,” Lee said.

It responds that Google said last week during a call for profits, warning that this waits that the wind to its advertising business, especially from the Asia-Pacific region. Exactly the same Hair On Tuesday stated that this “experienced winds To start the current quarter. “

Trump’s Chinese tariffs on 145% also affect the Meta’s Reality Labs unit, which creates virtual reality devices and augmented reality.

Laboratory in reality had Operating Loss of $ 4.2 billion Bringing $ 412 million during the first quarter.

Meta said its capital expenses for 2025 will be in the range of $ 64 to $ 72 billion, which is higher than in previous forecasts up to $ 60 billion.

“This updated forecast reflects additional investments at the data processing center to support our artificial intelligence efforts, as well as increase the expected cost of infrastructure equipment,” the company said in a profit.

As for the higher costs of infrastructure equipment, Lee said analysts that the result of “suppliers leaving countries”. She said that the higher cost of infrastructure equipment and “higher expected reality of the laboratory of the sold goods” has “partially offset” by a reduced prognized range for the total cost of 2025, she said.

“This has a lot of uncertainty, given the constant trade discussions,” Lee said, adding that as a result Meta changes its supply chain.

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