Meta continued the big tech earnings streak with a strong quarterly report Wednesday afternoon, sending its shares higher. Billionaire CEO Mark Zuckerberg’s commitment to cutting costs has proven popular with investors.
Highlights
- Meta reported quarterly revenue of $28.6 billion (€25.9 billion) and earnings per share of $2.20 (€2), beating analyst estimates of $27.7 billion (€25.1 billion) and $2.02 (€1.83 billion).
- Shares of Facebook’s parent company rose 10% after the report was released, hitting its highest level since February 2022, after gains of 1% in regular trading on Wednesday.
- According to Forbes’ calculations, Mr. Zuckerberg has added $8.4 billion (€7.6 billion) to his fortune (net worth) thanks to a stock rally.
- The company still posted a staggering $1 billion loss in its augmented and virtual reality, or metaverse, division, which is worse than analyst expectations and represents a more than 30% loss in this segment compared to the first quarter of last year. .
- Meta also cut its 2023 cost estimate by an additional $3 billion (€2.7 billion) after lowering its forecast by $5 billion (€4.5 billion) when publishing its results in February, evidence of the first results of the company’s results-oriented restructuring, marked by thousands of operations. demobilization.
main context
The Meta results come a day after both Microsoft and Alphabet, Google’s parent company, beat earnings and sales forecasts in their respective reports. These three companies, along with fellow tech giants Amazon, Apple, Nvidia and Tesla, have added a combined market capitalization of $2 trillion (€1.8 trillion) so far in 2023, which accounts for most of the S&P 500’s gains. About 45% of all-time high in 2021. The rapid decline in Meta shares was largely due to Wall Street not liking the company’s decision to invest heavily in the Metaverse. Meta has reported losses of more than $20 billion (€18 billion) in its metaverse sector since it changed its name from Facebook to Meta in the last quarter of 2021.
A large number
21,000. That’s the number of employees Meta has laid off in the past six months, reducing its workforce by more than 20%.
Amazing fact
Meta stock had its best day since July 2013 after its results were released in February, rising 23%. This increase is explained by the fact that Meta carried out share buybacks in the amount of $40 billion (€36 billion) and its turnover was higher than expected.
the shadow
A ban on TikTok in the US could boost Meta stock by up to 30%, Mark Schmulek estimated in a note to customers last month, noting that Meta Instagram Reels is by far the short-form video service in the US in its best position to benefit. From the potential void left by TikTok.
Forbes rating
According to Forbes’ calculations, Mark Zuckerberg’s net worth was $75 billion (68 billion euros) at the close of trading on Wednesday, making him the 15th richest person in the world. That’s an increase of more than 100% from last fall, but it’s down nearly 50% from September 2021, when Zuckerberg’s fortune was $136.4 billion (€123.7 billion).
Translated article from the American magazine Forbes – Author: Derek Saul
<< اقرأ أيضًا: قد يكون لدى Twitter قريبًا منافس جديد ، يدعمه جاك دورسي نفسه >>>
