‘Stocks have gone up but some have to downgrade a bit to keep the company growing.’
Still fresh in the memory of the poor performance of Facebook owned by Meta Platform Inc in February, but today the shares of the social media giant are shining again.
During Wall Street’s trading session yesterday, Meta shares jumped 19% with the Facebook app seeing the number of its daily active users rise again.
Citing IBES Refinitiv sources, Meta's profit exceeded Wall Street's expectations at US $ 2.72 per share compared to the $ 2.56 set.
Additionally, Facebook’s total daily active users stood at 1.96 billion compared to expectations of 1.95 billion while monthly active users reportedly reached 2.94 billion, missing 30 million from Wall Street’s estimates.
According to Insider Intelligence analyst Debra Williamson, it is an encouraging performance, however, the growth of monthly active users is seen to be slow compared to the previous quarter.
Meanwhile, Meta’s total revenue, which largely came from ad sales, rose 7% to $ 27.91 billion in the first quarter, yet it failed to surpass the $ 28.20 estimate set by analysts.
As for the company's net income, it fell 21% to $ 7.47 billion in the first quarter but managed to surpass expectations of $ 7.17 billion.
Meanwhile, Meta forecast revenue for the 2nd quarter of $ 28 billion to $ 30 billion while analysts set an estimate of $ 30.63 billion.
Meta is understood to have lowered total 2022 spending to $ 87 billion and $ 92 billion from previously between $ 90 billion and $ 95 billion.
It turns out that the various challenges that Meta will face in the 2nd quarter as Russia has banned the use of Facebook and Instagram, in addition to issues with changes to Apple's privacy policy and increased competition by TikTok owned by ByteDance.
