February 3, 2023
Meta investors received a double dose of good news. It reported better-than-expected quarterly results and received a favorable ruling from the judge overseeing the FTC’s attempt to halt a virtual reality acquisition.
Meta reported quarterly revenue of $32.16 billion, exceeding Wall Street expectations of $31.5 billion. It also increased its authorized stock buyback by $40 billion and forecasted revenue of $26 billion to $28.5 billion for the current quarter, which ends in March.
A judge also approved Meta’s acquisition of a virtual reality fitness startup. Within, the Federal Trade Commission’s bid to halt the acquisition was rejected. According to Bloomberg, the ruling was made in sealed court documents by U.S. District Judge Edward Davila, who also stated that Meta must wait a week before closing the deal to allow the agency time to appeal his decision. According to Bloomberg, the judge also ordered Meta to wait a week before closing the deal.
The decision of the judge was filed under seal, which meant that it was not available to the public. Meta did not respond to requests for comment. Although, when the suit was filed, it stated that the FTC’s move defied reality and expressed confidence that its purchase of Within would benefit both VR users and developers who create apps in that market.
In after-hours trading Wednesday, shares of Facebook parent Meta rose more than 17% after the tech giant exceeded Wall Street revenue and user growth expectations. According to Yahoo finance data, its shares exploded past 20% in midday trading on Thursday, putting it on track for its largest daily gain since July 2013, and its second-best day since the company went public in 2012.
It also reported revenue that exceeded analysts’ expectations late Wednesday and announced a $40 billion stock buyback plan, increasing market value by $100 billion in a single day.
The sources for this piece include an article in Axios.
