33 C
Saturday, June 3, 2023

Stocks rise after better-than-expected earnings

Meta (META) reported its fourth-quarter 2022 earnings today after the bell, as Facebook parent beat key revenue expectations amid a tough ad market.

Here’s what the key numbers looked like, compared to analyst estimates compiled by Bloomberg.

Fourth Quarter Income: $32.17 billion actual vs. $31.65 billion expected

Advertising revenue – $31.25 billion actual versus $30.86 billion expected

Adjusted earnings per share (EPS) – $1.76 actual versus $2.26 expected

Facebook Daily Active Users (DAU) – 2 billion real versus 1.98 billion expected

Application Family Daily Active Users (DAU) – 2.96 billion real versus 2.92 billion expected

Reality Labs operating loss: -$4.28 billion actual versus -$3.99 billion expected

Shares of the company were up about 14% in after-hours trading.

These numbers cap what has been an exceptionally difficult year for Meta, which also owns Instagram and WhatsApp. In 2022, the company’s shares fell roughly 63% as the social media giant battled growing competition from TikTok, high inflation, and a muted digital advertising market.

Rival Snap (SNAP) reported earnings yesterday, barely meeting Wall Street expectations for revenue and DAU and hinted at a likely revenue decline in the first quarter of 2023. Snap’s shares plunged about 13% after the report.

Meta Platforms CEO Mark Zuckerberg leaves federal court after attending Facebook’s parent company’s defense of its acquisition of virtual reality app developer Within Inc., in San Jose, California, U.S. , December 20, 2022. REUTERS/Laure Andrillon

Meta has many moving parts

In today’s earnings release, Meta notably announced a $40 billion share buyback. It’s a strong move, given that the company laid off 11,000 workers in November, and more jobs are reportedly on the table even now. Additionally, the company’s C-suite has undergone a substantial reorganization over the past year, with COO Sheryl Sandberg officially leaving the company in September.

It’s been a solid day for Meta, which reportedly won its case against the Federal Trade Commission (FTC) this morning, getting the green light to buy virtual reality developer Within, which makes the fitness app Supernatural. The FTC has the option to appeal and, going forward, will likely continue to look at future Meta deals under President Lina Khan.

allie garfinkle is a senior technology reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and in LinkedIn.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here.

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app to Apple either Android

Follow Yahoo Finance on Twitter, Facebook, instagram, flip board, LinkedInY Youtube

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles