Meta Platforms Inc. (META), the parent company of Facebook, reported its earnings for the first quarter of the year, and it has exceeded expectations (yahoo.com). The company’s net revenue was up 50% year-over-year, to $15.9 billion, with advertising revenue contributing a bulk of it (CNN.com). The expenses were also down, continuing the trend set in the previous quarter (yahoo.com). As a result, the Meta stock has surged, with its value up by 9% following the announcement of the earnings report (cnbc.com).
The trend of good news is not new for Meta, which has seen strong growth in its stock value this year (fool.com). Analysts suggest that the recent ascent of the Meta stock value is because of job cuts in the company, which have allowed it to refocus on its core competencies (fool.com). Some predict that the Facebook parent’s revenue could surge if it recovers from the hit it faces due to Apple’s latest ad policy (Investor’s Business Daily, CNN.com).
The Meta Platforms has had impressive quarterly earnings for the third consecutive quarter. The company also expects the user growth to continue as the world becomes more reliant on social media (axios.com). Recently, the company has been focused on expanding its presence in the metaverse, a virtual space that incorporates augmented reality (AR) and virtual reality (VR) (forbes.com). Although the company is bleeding billions of dollars in this venture, its stock price continues to soar thanks to its impressive earnings reports.
Furthermore, the Meta stock has been a notable mover in after-hours trading, according to CNBC, with its stock price increasing by over 9% after the announcement of first-quarter earnings. Meta Platforms’ positive earnings report indicates that the company is well-positioned going forward.
