Meta, the parent company of Facebook, has seen a spike in stock futures after announcing its fourth quarter revenue figures, which exceeded expectations. Despite this, the company still reported a 4.5% decrease in revenue compared to the same period of the previous year. Following the announcement, Meta stock futures rose 18%. Meta reported 2 billion daily active users, an increase of 4% year-over-year and more than the 1.99 billion expected.
In an attempt to recuperate some of the losses, Meta CEO Mark Zuckerberg has been focusing on the metaverse, an online experience he has billed as revolutionary. Despite his efforts, the Reality Labs unit lost more than $9 billion in the first three quarters of 2022, and the demonstrations of the metaverse were met with criticism. As a result, Meta cut 11,000 of its jobs - 13% of its workforce - and extended a hiring freeze until the start of 2023.
Last week, Meta also announced that former President Donald Trump’s Facebook and Instagram accounts would be reinstated after a two-year ban following the Capitol attack in January 2021. Mark Zuckerberg, the founder and CEO of Meta, is worth an estimated $55.2 billion, and owns about 13% of the company's stock.
Meta, the parent company of Facebook, has seen a significant rise in stock futures after beating its fourth quarter revenue estimate. The company reported revenue of $32.2 billion, 4.5% lower than the same period of the previous year but above the roughly $31.5 billion analysts were expecting. Following the announcement, Meta stock futures rose 18%. Meta also reported 2 billion daily active users, an increase of 4% year-over-year and more than the 1.99 billion expected.
In an effort to recuperate some of the losses, Meta CEO Mark Zuckerberg has been focusing on the metaverse. Despite his efforts, the Reality Labs unit lost more than $9 billion in the first three quarters of 2022, and the demonstrations of the metaverse were met with criticism. As a result, Meta cut 11,000 of its jobs - 13% of its workforce - and extended a hiring freeze until the start of 2023.
Last week, the company also announced that former President Donald Trump’s Facebook and Instagram accounts would be reinstated after a two-year ban following the Capitol attack in January 2021. Mark Zuckerberg, the founder and CEO of Meta, is worth an estimated $55.2 billion, and owns about 13% of the company's stock.
Overall, Meta has seen a positive spike in stock futures after beating its fourth quarter revenue estimate. While the company has seen three consecutive quarters of declining revenue due to a decrease in online advertising spending and competition from TikTok, the reinstated accounts of former President Donald Trump, and the positive earnings report, have helped to give the company a much-needed boost.