On Wednesday, Meta Platforms announced its second-quarter financial results, which were above analysts’ estimates.
Its stock price went up by 1.39% to $298.57 per share on July 26. Likewise, it is expected to rise by 6.89% to $319.15 apiece in the upcoming session.
The company’s earnings per share climbed to $2.98, beating the experts’ $2.91 forecast. Also, it is higher than the previous $2.20 data.
Moreover, the revenue of Meta jumped to $32.00 billion, topping the $31.08 billion estimates. Therefore, it beat the prior $28.65 billion figures.
It reported solid growth in its advertising revenue that beat Wall Street consensus for the second quarter. Additionally, it expected a third-quarter revenue that surpasses the market forecasts.
Furthermore, the Facebook parent company anticipated a Q3 revenue of $34.50 billion, higher than the previous $32.00 billion. According to analysts, they estimated an outlook worth $31.30 billion. It shows a growth of around 15.00% from last year.
The net income of Meta rose to $7.79 billion or $2.98 apiece. The total of its costs and expenses reached $22.61 billion in Q2, a 10.00% increase from the previous year.
In addition, Mark Zuckerberg is aiming for the company to be more efficient. He plans to institute a cost-savings plan which led to 21,000 layoffs. Currently, they are speculating capital expenditures of $30.00 billion.
Threads by Meta Downgrades Current Affairs
Recently, Meta Platforms launched an app called Threads to compete with its controversial competitor, Twitter. It earned 100 million users within only five days of its release.
In 2021, the company started to decrease the number of political contents in its platform’s feeds. Also, posts about current events only reached 3.00% of users’ Facebook feeds.
Moreover, Meta is analyzing whether the established legislation would drive them to remove news-related links on Threads.
According to Andrew MacLeod from Postmedia, the firm has been attempting a short-term decline in traffic. This would come after the Facebook parent company news restriction is enforced.
He added that if Facebook thinks news has no value, the platform could mention it at the negotiating table.
