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• Meta’s bottom line beat analysts’ estimates, but its top line came below expectation
• As of Wednesday’s close, shares were down almost 50% year-to-date
Meta Platforms Inc (NASDAQ: FB) shares jumped on Wednesday after Facebook beat Wall Street’s estimate for daily active users in the first quarter, even as the social media giant recorded its slowest revenue growth in a decade.
Shares of Meta spiked nearly 20% in extended trading.
The company reported a profit of $2.72 per share, beating the analysts’ estimate of $2.56. Although the net income fell 21% to $7.47 billion in the first quarter, it outperformed the forecast of $7.15 billion.
Total revenue, the bulk of which comes from ad sales, rose 7% to $27.91 billion but missed the market expectation of $28.20 billion.
Daily active users (DAU), a critical metric that indicates activity on Facebook, were 1.96 billion, slightly higher than the Street’s consensus of 1.95 billion.
Monthly active users (MAU) came in at 2.94 billion, missing estimates by 30 million.
Meta has lost almost half of its value year-to-date after reporting miserable earnings for the quarter that ended on December 31.
Facebook reported a decline in daily active users for the first time and forecasted a gloomy quarter, blaming factors like Apple Inc’s (NASDAQ: AAPL) privacy changes and increased competition from TikTok.
The social media giant said it expects to generate revenue between $28 billion and $30 billion in the second quarter, citing factors Russia-Ukraine war.
Meta lowered its full-year expense outlook to $87 billion and $92 billion, down from its prior forecast of $90 billion to $95 billion.
Picture Credit: CNBC
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