Meta, Facebook’s parent company, has posted profits that are ahead of Wall Street targets, thus defying low investor faith with its quarterly financial report that made shares of Meta rise by 20%. This was also due to Facebook rebounding from a drop in its active user base.
CEO of Meta, Mark Zuckerberg, has also pointed out that Meta would continue to scale back its cost. It was investing in AI tools to further improve adverts and recommendations. Many view this as a sign that Meta is all set to make money while also working on its goal of building the metaverse.
Meta’s profit thrashed Wall Street targets with $2.72 a share compared to analyst estimates of $2.56. This time around, Meta has recorded its slowest period of growth in the last decade.
One of the most important metrics for advertisers is the DAU of Facebook (daily active users), which stood at 1,96 billion USD. This is a shade higher than 1.95 billion, as predicted by IBES data from Refintiv. The number of active users monthly was at 2.94 billion, which was lesser than Wall Street estimates by 30 million.
Since the start of this year, Meta has lost around half of its value, which is a staggering loss. The quarter seemed gloomy due to factors like Apple’s privacy changes, as well as heightened competition from TikTok of ByteDance.
To round off, Meta’s total revenue, which the most comes from advert sales, has risen by 7% to $27.91 billion. But, this first quarter showing was off the mark from analyst estimates of $28.20 billion.