Meta Platforms provided a pleasant surprise to the market as they forecasted third-quarter revenue above expectations. This announcement resulted in a boost to their shares, suggesting that they anticipate increased advertising spending due to a positive macroeconomic environment.
According to Refinitiv data, the company predicts revenue between $32 billion and $34.5 billion for the months of July to September. This projection surpasses the average estimate of $31.30 billion from analysts. Mark Zuckerberg, the CEO of Meta, expressed his enthusiasm for the company’s future prospects, highlighting exciting developments such as Llama 2, Threads, Reels, upcoming AI products, and the launch of Quest 3 this fall.
Remarkably, despite the positive revenue forecast, Meta also anticipates an increase in expenses for 2023 and 2024. These expenses include legal fees and investments in infrastructure, crucial for the competitive AI race within the tech sector.
CEO Mark Zuckerberg emphasized the strong engagement across Meta’s apps. This engagement, combined with the better-than-expected revenue forecast, has led to initial surges of 7% in after-hours trading for Meta’s shares, settling around 2% above the closing price. Furthermore, Meta has exceeded second-quarter revenue estimates, achieving an 11% growth to $32 billion in the quarter ended June, surpassing analysts’ average estimate of $31.12 billion.
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