Meta shared its quarterly earnings earlier this week, with the results beating the expectations of analysts. The company saw its earnings per share coming at $4.71 versus $4.32 per share expected, while the revenue of $36.46 billion also beat estimations of $36.16 billion.

However, the company issued a weak forecast for the next quarter, predicting sales to come in the range of $36.5 billion to $39 billion, while the analysts expected $38.3 billion. Additionally, the company now expects to have a capital expenditure of between $35 billion and $40 billion compared to previous expectations of $30 billion to $37 billion due to focus on AI.

“We expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts,” Meta shared in a statement.

Meta’s shares closed at $493.50 on Wednesday but plunged all the way down to $421.18 in after-hours trading and wiped out close to $200 billion of market value. Before the plunge, the company’s stock was 42.51% up year to date.

The post Meta Stock Slides 14% After Announcement of Plans for “Aggressive” AI Expenditures appeared first on theprimarymarket.com.

Digital ads, artificial intelligence (AI), as well as the newly-launched Twitter competitor Threads, are of particular interest to observers, along with the company’s VR operation, Reality Labs.

“We believe Meta is in the early stages of benefiting from multiple product catalysts, including Reels, AI, and cost discipline,” Boone explained. “Specifically, Reels and improved recommendation algorithms are driving greater user engagement, and with models still improving, we expect Facebook and Instagram to continue to take share of user time.”

Wall Street expects Meta to report a revenue of $31.06 billion with earnings per share of $2.92. The company’s operating margin is expected to come in at 30.4%.

The post Earnings Estimates Released for Meta’s Q2 Results appeared first on theprimarymarket.com.

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.

The post Meta Stock Soars After Impressive Q1 Earnings Results appeared first on theprimarymarket.com.

Meta shared its quarterly earnings earlier this week, with the results beating the expectations of analysts. The company saw its earnings per share coming at $4.71 versus $4.32 per share expected, while the revenue of $36.46 billion also beat estimations of $36.16 billion.

However, the company issued a weak forecast for the next quarter, predicting sales to come in the range of $36.5 billion to $39 billion, while the analysts expected $38.3 billion. Additionally, the company now expects to have a capital expenditure of between $35 billion and $40 billion compared to previous expectations of $30 billion to $37 billion due to focus on AI.

“We expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts,” Meta shared in a statement.

Meta’s shares closed at $493.50 on Wednesday but plunged all the way down to $421.18 in after-hours trading and wiped out close to $200 billion of market value. Before the plunge, the company’s stock was 42.51% up year to date.

The post Meta Stock Slides 14% After Announcement of Plans for “Aggressive” AI Expenditures appeared first on theprimarymarket.com.

Digital ads, artificial intelligence (AI), as well as the newly-launched Twitter competitor Threads, are of particular interest to observers, along with the company’s VR operation, Reality Labs.

“We believe Meta is in the early stages of benefiting from multiple product catalysts, including Reels, AI, and cost discipline,” Boone explained. “Specifically, Reels and improved recommendation algorithms are driving greater user engagement, and with models still improving, we expect Facebook and Instagram to continue to take share of user time.”

Wall Street expects Meta to report a revenue of $31.06 billion with earnings per share of $2.92. The company’s operating margin is expected to come in at 30.4%.

The post Earnings Estimates Released for Meta’s Q2 Results appeared first on theprimarymarket.com.

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.

The post Meta Stock Soars After Impressive Q1 Earnings Results appeared first on theprimarymarket.com.