Mark Zuckerberg’s social media empire has seen a significant increase in advertising revenues and announced that 3 billion people are now actively using Facebook on a regular basis. This is great news for Meta, the parent company of Facebook, Instagram, and their newly launched app called Threads. In the last three months ending in June, Meta reported an 11% rise in revenues. The number of monthly users on Facebook has surpassed 3 billion, indicating that nearly 40% of the global population is using the platform.
Despite the challenges in the advertising market, Meta’s advertising sales have surged to $32 billion, surpassing their rival Twitter’s sales under Elon Musk’s leadership. Twitter, on the other hand, has been experiencing a decline in advertising revenues as brands lose interest in Musk’s revamped app.
In response to these circumstances, Mark Zuckerberg seized the opportunity and launched his own rival app called Threads. With over 100 million users already, Threads resembles Twitter closely, and Meta’s sales jump suggests that some advertisers may be shifting their spending from Twitter to Zuckerberg’s apps.
Moreover, Meta’s profits have also increased by 16% to $7.8 billion, thanks to effective cost-cutting measures. As a result, Meta’s share price has doubled this year as investors regain confidence in technology stocks following the pandemic.
Meta’s stock rose by 5% in after-hours trading in New York after the company projected sales that exceeded Wall Street’s expectations for the upcoming months. However, Meta did caution that its Reality Labs division, which focuses on Zuckerberg’s futuristic metaverse vision, would continue to incur losses.
The increase in Facebook users, up 3% compared to the previous year, marks a turnaround for the app after a period of stagnation. Furthermore, Meta reported that nearly 3.9 billion people were using one of its “family of apps,” including WhatsApp and Instagram, representing a 5% increase.
This recovery in advertising sales follows Meta’s struggle with Apple’s crackdown on app tracking on iPhones, which hindered their growth last year.
These positive results from Meta contrast with Snap, their smaller rival, which experienced a 19% stock price decline following its quarterly results.
Despite concerns regarding Meta’s significant spending on Zuckerberg’s “metaverse” concept, the company’s shares have more than doubled in value this year.
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