Facebook parent Meta tops 1st-quarter profit estimates, shares rise
Global News
The strong results come as Meta's tech rivals appeared to be climbing out from an industry-wide slump that has prompted more than 150,000 layoffs across the sector.
Meta Platforms Inc forecast second-quarter revenue above market expectations as digital advertisers pivot to tried and tested platforms such as Facebook and Instagram amid growing economic worries.
Shares of the Facebook-parent rose nine per cent after the bell on Wednesday as its profit also beat Wall Street estimates.
The strong results come as Meta’s tech rivals appeared to be climbing out from an industry-wide slump that has prompted more than 150,000 layoffs across the sector.
Google parent Alphabet Inc reported strong results on Tuesday as its digital ad sales held up better than expected and demand rose for cloud services.
Microsoft likewise beat Wall Street’s estimates and said artificial intelligence products were stimulating sales.
Meta has kicked off an aggressive cost-cut drive, with plans to eliminate 21,000 jobs and flatten its middle-management structure as it works towards CEO Mark Zuckerberg’s goal of turning 2023 into the “year of efficiency.”
“Our AI work is driving good results across our apps and business. We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision,” Zuckerberg said.
The company had narrowed its annual expenses forecast to between $86 billion and $90 billion from $86 billion to $92 billion it had predicted earlier.
