April 28, 2023
Meta’s stock climbed more than 9% after exceeding Wall Street’s forecasts for sales, profitability, and user growth in the first quarter of the year.
This is the first quarter in which Meta’s year-over-year revenue has increased following three straight quarters of sales losses. The growth suggests that the ad market, which was adversely impacted by economic uncertainties in the second half of 2022, is now starting to rebound. Meta had previously forecast that its first-quarter sales would decline or grow by no more than 2%, but instead, revenues climbed by roughly 3% year on year.
Meta’s strong financial results show that its attempts to become more efficient by cutting costs are paying off. Total costs climbed by 10% year on year in the prior quarter. Meta said last month that it will lay off 10,000 employees and close 5,000 unfilled positions. Meta laid off 13% of its workforce, or about 11,000 individuals, in November.
Despite a difficult 2022, Meta has experienced one of the most significant recoveries in the tech industry. Its stock price is up 68% year to far, more than making up for the enormous losses it suffered last year. Meta also forecasted that top-line sales will increase in the second quarter, signaling to investors that the business believes its first-quarter momentum will not be short-lived.
The sources for this piece include an article in Axios.
