Share price for Facebook’s parent company, Meta, spiked after its actual revenue and user growth came out more than Wall Street’s expectations.
Meta’s stock spiked by more than 17% in trading hours on Wednesday after news of the tech giant’s revenue and user figures was released. The company was not expected to grow at such a pace, the way it used it in previous times.
Facebook Meta’s increase in revenue is coming months after it fired over 11,000 of its employees in a bid to reduce costs.
- Meta brought in 4% less revenue compared to the same quarter the year prior, but it didn’t lose more than investors were expecting, which is partly why Wall Street responded positively to the company’s results.
- Meta also announced a $40 billion stock buyback, which shareholders typically welcome.
According to Meta, it had 2 billion daily active users across its group of social media apps which includes Facebook, Instagram, and WhatsApp.
The majority of its total user base of 2.9 billion (67%) uses at least one of its apps every day.
From the figures released, Meta (Facebook, Instagram, and WhatsApp) continue to be the dominant and most-used social media network in the world.
Meta reportedly spent $4.2 billion in restructuring costs for the fourth quarter of 2022 and says it expects to spend another $1 billion on restructuring costs this year 2023.
The makeup of the huge cost spent on restructuring includes severance payments to laid-off workers and early termination fees for office leases.
However, Facebook continues to make huge losses in the Metaverse Universe.
Meta’s stock has lost about 70% of its value in 2022, and it seems Wednesday’s revenue report might have put an end to the losing streak. However, its competitor Snap Inc. told investors that it expects its revenue to drop by around 2% to 10% in the same period.
Meta’s Stats: Earnings, Revenue, Daily & Monthly Active Users
- Earnings: $1.76 per share
- Revenue: $32.17 billion vs $31.53 billion expected, according to Refinitiv
- Daily Active Users (DAUs): 2 billion vs 1.99 billion expected, according to StreetAccount
- Monthly Active Users (MAUs): 2.96 billion vs 2.98 billion expected, according to StreetAccount
- Average Revenue per User (ARPU): $10.86 vs $10.63 expected, according to StreetAccount