Meta jumps more than 25% after quarterly results
Meta (Facebook, WhatsApp and Instagram) posted quarterly earnings that beat Wall Street expectations, while its outlook is positive. Shares on Wall Street rose more than 25%.
If you have snap results
Published on Tuesday evening, investors feared the worstThose of Meta Platforms
The parent company of Facebook and Instagram, should probably reassure them somewhat. Technology giant a circulation for the fourth quarter exceeded analysts’ estimates and amounted to $32.17 billion. This basically represents a reversal demand for digital advertising after months of low sales, so that society attracts More users on the Facebook social network.
“Our community continues to grow and I’m excited about the strong engagement of our apps. Facebook just passed the milestone of 2 billion daily actives.”
Mark Zuckerberg’s group thus predicts turnover between 26 and 28.5 billion dollars, according to the average analyst estimate of $27.14 billion. In addition, the company announced that it has extended its share buyback program 40 billion dollars.
“Our community continues to grow and I’m excited about the strong connection of our apps. “Facebook” has now passed the milestone of 2 billion daily activities. The progress we’ve made on our discovery engine AI and Reels are the main drivers”Zuckerberg said in his statement.
These results make investors happy The stock rose more than 25% on Wall Street, around 7:30 p.m. After that, Apple, Alphabet and Amazon, which will publish their results after the American markets close, rose from 2.65% to 6.4%. “The fact after the Snap disaster Meta Tech wasn’t too bad for Mega-Caps“There’s also a less hawkish Fed, which boosts demand for growth and tech stocks in general.”
However, it is important to remember that the stock lost about 25% of its value in one year. Worst stock market year in 2022. The digital giant has seen other companies cut back on marketing spending due to macroeconomic uncertainties, while rivals such as TikTok have captured younger users, and updates to privacy rules from Apple last year continue to hurt players who use online advertising.
“Year of Efficiency”
“Furthermore, our management theme for 2023 is ‘the year of efficiency’ and we aim to become a stronger and more agile organization.”
While the results of the Menlo Park, California-based group are generally positive, there is still a big shadow in the picture: its quarterly profit fell 55% year-over-year, due to a heavy burden of cost-cutting measures such as layoffs, office closures and an overhaul of the data center strategy. For 2023, the company has reduced its value prediction $5 billion That could help ease concerns among investors who fear the company is spending too much on its VR ambitions.
“In addition, our management theme for 2023 is ‘the year of efficiency,’ and we are focused on becoming a stronger, more agile organization,” Zuckerberg said in a statement. Recall that in November, Meta announced that it would lay off more than 11,000 employees, or 13% of its workforce, as part of cost-cutting plans.
Russ Mould to AJ Bell: “Promise 2023 will be the year of efficiency, it has always been likely to go well for investors worried about the large amount of spending on the unproven potential of the metaverse.”