HomeFinancial MarketsMeta Stock Soars After Impressive Q1 Earnings Results

Meta Stock Soars After Impressive Q1 Earnings Results

Meta Platforms, the parent company of Facebook and Instagram, took investors and analysts by surprise with its first-quarter earnings results. Wednesday’s report revealed that Meta not only topped expectations by a healthy margin but also recorded sales growth after three consecutive negative quarters.

As a result of Meta’s strong performance in Q1, the company’s stock soared in after-hours trading. The shares jumped almost 12% compared to Wednesday’s close price of $209.40.

Meta’s revenue grew by 3% compared to the same period last year and came to $28.65 billion. The analysts polled by Bloomberg expected a decline and revenue of $27.67 billion. The $2.20 in earnings per share topped the estimated EPS of $2.01, while advertising revenue of $28.1 billion was also well above the expected $26.76 billion.

“We had a good quarter, and our community continues to grow,” Meta’s CEO Mark Zuckerberg said in a statement. “We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision.”

Among other numbers, Meta raised its forecast for the second quarter of 2023 to $29.5 billion-$32 billion, compared to an estimated $29.48 billion. The company also reported a $1 billion loss from the restructuring process it underwent earlier this year and expects an additional $500 million in costs from the job cuts.

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