Facebook recovered from a decline in its number of users earlier this year and its parent company Meta posted earnings, beating Wall Street targets, bypassing low investor expectations with a quarterly report that boosted Facebook’s share price by 20%.
Meta CEO Mark Zuckerberg also said the company will cut costs while investing in artificial intelligence tools to improve referrals and advertising, as a sign that the company is working consistently to make a profit while promoting systematically and its long-term ambitions regarding the organization of metaverse.
Meta earnings exceeded Wall Street expectations at $ 2.72 (€ 2.58) per share, compared to analysts’ average earnings estimate of $ 2.56 (€ 2.43) according to forecasts (Refinitiv ).
Active Facebook users (DAUs), which is an essential data for advertisers, were recorded at 1.96 billion, slightly higher than the estimate of 1.95 billion users (Refinitiv). Active users on a monthly basis were recorded at 2.94 billion, lower than the Wall Street forecast, by 30 million users.
Meta has lost about 50% of its market value since the beginning of the year, following a grim earnings report in February, when daily active Facebook users fell for the first time, with the same report citing a disappointing quarter citing data, including changes in Apple’s personal data, but also increasing competition from platforms such as TikTok.
“It’s good news that Meta has somehow managed to increase the number of daily users. It was necessary to show some reversal from the performance of the last quarter, “said Debra Williamson, an analyst (Insider Intelligence).
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