Meta’s Earnings Call Couldn’t Have Gone Better After Topping Analyst Predictions and Boosting Guidance
Key takeaways
- Meta’s earnings per share and revenue both bested analysts’ predictions for the second quarter
- The social media giant has undergone a slew of changes, including restructuring, mass layoffs and launching a new social media app, Threads
- The stock surged 9% at the news and is up nearly 150% this year so far
Zuckerberg’s ‘year of efficiency’ has well and truly paid off. Meta, the parent company of Facebook, Instagram and Whatsapp, posted better-than-expected earnings for the second quarter, which lit a fire under the stock price.
Meta’s dramatic reversal of fortunes from last year instils further confidence from Wall Street that Zuckerberg is making the right calls to propel Meta to new heights. We’ve got the details on earnings and stock moves below.
Tech stocks’ growth have been incredible this year, but it’s a tricky market to navigate alone. Q.ai’s Emerging Tech Kit is your pass to the exhilarating tech market, sans the worry. With a diverse line-up of tech stocks and ETFs, it keeps risk at bay. The real kicker? Our advanced AI algorithm, primed to help optimize your investment performance.
Download Q.ai today for access to AI-powered investment strategies.
What happened on the Meta earnings call?
Meta’s flying high right now, and the financials are there to back it up. The Big Tech titan reported earnings per share of $2.98, surpassing the $2.91 prediction analysts had posted. Revenue reached $32 billion for the second quarter year over year, topping analyst expectations of $31.19 billion.
As for the current quarter, Meta predicts its revenue will be in the region of $32 billion to $34.5 billion. Analysts had predicted $31.3 billion. Other notable aspects of the beat were Reels’ monetization prospects looking increasingly rosy and the return on investments in AI.
Meta CEO Mark Zuckerberg seems excited about the future after a difficult 12 months at the company. “We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall,” a statement said.
What was the market reaction?
The social media company is the darling of Wall Street, so it was inevitable that investors liked the news. Meta’s share price soared 9% on Thursday at the earnings beat, at one point trading at its highest level since January 2022.
Meta can seemingly do no wrong in Wall Street’s eyes this year, with the stock being one of the biggest gainers this year. Meta’s share price has climbed nearly 150% in 2023, with no stop to the incredible rally in sight.
Meta’s share price gains have been driven by several factors, including mass layoffs and a move away from the metaverse, the promise of generative AI coming to Meta’s portfolio of apps and repeatedly topping earnings predictions.
The bottom line
Meta’s growth prospects keep improving, and investors can’t get enough of the stock. It’s a complete turnaround from just a few months ago when Meta was in the midst of mass layoffs and shying away from its big bet on the metaverse. With the economic picture looking increasingly calmer and ad revenue returning, the next 12 months look bright for the company.
Despite its ups and downs, Meta’s share price made significant gains this year, much like the rest of the tech market. With Q.ai’s Emerging Tech Kit, you can join the rally. It uses AI to spot potential winners in the tech world and adjusts your holdings accordingly, helping to keep you ahead of the curve.
Download Q.ai today for access to AI-powered investment strategies.
