Get the latest updates on Meta Platforms for free!
Sign up now and receive a daily digest email called myFT Daily Digest that rounds up the latest news about Meta Platforms every morning.
The parent company of Facebook, Meta, has experienced double-digit revenue growth for the first time since the end of 2021, indicating a potential recovery from the digital advertising slump. Meta’s forecast for the current quarter is better than expected, with revenue expected to reach $32 billion to $34.5 billion, surpassing analysts’ expectations of $31.1 billion.
In the second quarter, Meta’s revenues rose by 11% to $32 billion, exceeding analysts’ predictions of $31.03 billion. This growth comes as Chief Executive Mark Zuckerberg works to revive the company from a period of slower growth and investor concern over its investments in the metaverse, leading to a restructuring of the organization, including layoffs of approximately 20,000 employees.
Zuckerberg also aims to enhance Meta’s investment and capabilities in artificial intelligence. Following the positive financial results, Meta’s shares surged as much as 8% during after-hours trading on Wednesday.
The company’s net income increased by 16% to $7.8 billion, surpassing consensus expectations of $7.4 billion. However, costs rose by 10% to $22.6 billion due to legal expenses of $1.9 billion and restructuring charges of $780 million. Additionally, Meta received a €1.2 billion fine from the EU for privacy violations in May.
Zuckerberg expressed optimism about Meta’s future, stating, “We continue to see strong engagement across our apps and we have an exciting road map ahead.” He highlighted the launch of artificial intelligence products and technologies as a significant milestone. Notably, Meta has been focusing on generative AI to enhance user experiences, improve advertising effectiveness, and increase internal productivity.
Meta recently released a commercial version of its large language model, Llama 2, aiming to compete with industry rivals such as OpenAI, Google, and Microsoft. The company is also developing “AI agents” or chatbots powered by the LLM. Additionally, Zuckerberg mentioned Reels, Meta’s short video feed similar to TikTok, and Threads, a text-based conversation app designed as an alternative to Twitter.
While Threads gained significant popularity within its first five days, attracting 100 million users, its usage has since declined. Overall, Meta’s monthly active users across all platforms, including Instagram, WhatsApp, and Quest, increased by 6% to reach 3.88 billion by the end of June.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
