Meta Proves Wall Street Wrong – Meta Releases Earnings
In a large shock to Wall Street, Facebook’s parent company Meta just announced earnings that seem to be changing the tides from their performance in 2022. After the bell, Meta reported better-than-expected revenues, sending the stock to rise more than 20% in the after-market. On the call, Meta founder and CEO Mark Zuckerberg claimed their management theme for 2023 is the “Year of Efficiency”, pointing to a large focus on cost-cutting measures that shareholders have longed for. In the past quarter, Meta claimed a controversial stance in affirming business practices that several believed to be too risky to give attention to. Now, it seems they have completely flipped their position, making a new commitment to cost optimization, especially during the current harsh economic climates.
Now, everything that glitters is not gold, as Meta’s sales figures were still down 4.5% from the previous year, marking three consecutive quarters of declines. Furthermore, one of their practices that has undergone large contention, Reality Labs, posted revenues that were down 17.1% when compared to last year. Regardless, investors and analysts alike do believe that Meta’s earnings report was far better than expected, and they are hopeful to see the structural changes the business makes this year. Along with increases in daily active users and ambitions to combat its competitor, TikTok, Meta has now gained its trust back from Wall Street in being a more commanding tech company throughout 2023.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.