meta Shares surged in extended trading on Wednesday after the company posted first-quarter earnings that beat expectations and provided optimistic guidance for the quarter.
- Earnings: $2.20 per share.
- Earnings: $27.65 billion versus $28.65 billion, according to Refinitiv.
- Daily Active User (DAU): 2.04 billion vs. 2.01 billion expected, according to StreetAccount
- Monthly Active User (MAU): 2.99 billion compared to an expected 2.99 billion, according to StreetAccount
According to Refinitiv, second-quarter revenue for Meta was between $29.5 billion and $32 billion, with analysts expecting $29.5 billion.
Meta’s first quarter sales were $28.65 billion, up 3% year-over-year.
Since Meta CEO Mark Zuckerberg announced in February that 2023 will be the company’s “year of efficiency,” the stock has risen, trimming last year’s historic losses.
Investors are flocking to Mr Zuckerberg’s plan to wind down the company through a series of layoffs that are expected to result in about 21,000 job cuts. The company just said goodbye to some tech jobs last week and is planning another cut for its business group workforce in May.
Meta’s downsizing effort comes at a time when the company’s revenue base is shrinking from a battered online advertising market and lingering effects. apple The 2021 iOS privacy update severely limited ad targeting capabilities. The company is also facing increasing competition from its rival, TikTok.
Facebook’s parent company could record a fourth consecutive quarter of sales declines if it releases its first quarter results. This is at the lower end of previous guidance of revenues between $26 billion and $28.5 billion.
Parent of Google alphabetThe company, which dominates the online advertising market along with Meta, reported first-quarter results on Tuesday that beat analyst expectations, although ad revenue fell from a year ago.
Outside of its core business, Wall Street would love to hear Meta’s latest plans for investing in the Metaverse, the future world of virtual and augmented reality. Since changing its name from Facebook to Meta in late 2021, the company has spent billions of dollars per quarter on its Metaverse technology, but revenue isn’t expected to be significant anytime soon.
Analysts expect Metaverse arm Reality Labs to record an operating loss of $3.95 billion in the first quarter, according to StreetAccount.
The meta stock has surged 72% so far this year after losing almost two-thirds of its value in 2023. The stock closed at $207.55 on Tuesday.
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