Meta Platforms (NASDAQ:META), the parent company of Facebook, has projected third-quarter revenue that exceeds market expectations. The announcement on Wednesday led to a surge in Meta stock, as investors anticipate higher advertising spending driven by an improving macroeconomic environment.
For the period of July to September, Meta forecasts revenue ranging from $32 billion to $34.5 billion, outperforming analysts’ average estimate of $31.30 billion, according to Refinitiv data.
Mark Zuckerberg, the CEO of Meta, expressed optimism, stating, We continue to see strong engagement across our apps, and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall.
Despite the positive revenue outlook, Meta also expects an increase in expenses during 2023 and 2024. The company cited rising costs, including legal fees and augmented spending on infrastructure, deemed crucial to the tech sector’s competitive AI race.
Following the earnings forecast, Meta stock experienced an initial 7% surge in after-hours trading, later settling around 2% above the closing price.
In addition to the strong forecast for the third quarter, Meta has already surpassed second-quarter revenue estimates. In the quarter ending in June, revenue reached $32 billion, marking an 11% growth compared to analysts’ average projection of $31.12 billion.
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Author Faith Yakubu 
