Meta Stock (NASDAQ:META)
Thursday saw a 15% increase in Meta stock after the Facebook parent company reported better-than-expected results for the first quarter and raised its guidance for the current quarter.
Late on Wednesday, Meta Platforms (NASDAQ:META) revised its revenue forecast for the second quarter from $29.48 billion to $29.5 billion to $32 billion. According to the company’s projection, foreign currency exchange rate headwinds are expected to contribute less than one percent to the company’s year-over-year sales growth.
Meta posted profits of $2.20 per share on revenue of $28.65B in its first quarter, above analyst estimates of $2.01 per share on $27.67B in sales. The advertising income of $28.1B was higher than the predicted $26.88B.
Meta stock investors were relieved by the positive advertising revenue results since, for months, several of the top social-media businesses had announced or at least implied sluggish growth or reduction in their ad income would be a recurring problem this year.
Mark Zuckerberg, CEO of Meta, recently commented on the company’s recent financial performance, saying, “We had a good quarter, and our community continues to grow.”
Zuckerberg said that AI development is still a top priority for Facebook. The artificial intelligence (AI) work being done by Meta “is driving good results” across its products and the entire company, according to Zuckerberg.
Zuckerberg said, “We’re also getting more efficient so we can make better products faster and put ourselves in a better position to deliver our long-term vision.”
Zuckerberg said Meta will have a “year of efficiency” in 2023. The firm has already taken steps to decrease costs, such as eliminating about 11,000 workers this year.
Meta (NASDAQ:META) said on Wednesday that layoff and restructuring costs cost the company $523M. It has been reported that layoffs would cost the corporation $1 billion this year.
With the help of layoffs and other cost-cutting measures, Meta has revised its previous October prediction of $96B to $101B in costs for 2023 down to an estimated $86B to $90B.
Featured Image: Unsplash @ solomin_d