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Meta Stock Reports 11% Revenue Growth.
“The parent company of Facebook, Meta reported impressive financial results for the June quarter, achieving a total revenue of $32 billion, which marks an 11% increase compared to the same period last year. This surpassed the projections made by Wall Street. Notably, this is Meta’s second consecutive quarter of revenue growth after facing challenging times with sales declines in 2022.
During the quarter, Meta recorded a substantial profit of $7.79 billion, reflecting a remarkable 16% rise from the previous year and exceeding analysts’ expectations.
These positive findings indicate a rebound in demand for digital ads, and the IT sector has been further strengthened by investor interest in AI.
Meta’s CEO, Zuckerberg
Earlier in the year, Meta’s CEO, Zuckerberg, outlined his plans for a “year of efficiency,” aiming to reinforce the company as a technology powerhouse and improve its financial performance. This initiative followed a tough year marked by stiff competition, challenges due to Apple’s app privacy changes, and reduced digital ad spending amidst macroeconomic uncertainties, leading to significant cost-cutting measures and substantial layoffs.
In line with this efficiency drive, Meta eliminated 11,000 positions, the largest layoff in its history, and later announced the layoff of 10,000 more employees. Zuckerberg expressed the company’s focus on creating stability for employees, removing barriers, and introducing new AI-powered tools to accelerate progress.
Notably, Meta recently launched Threads, a Twitter alternative, which received an impressive 100 million user sign-ups in less than a week. Although user engagement has seen a slight decrease, Meta continues to enhance the app with new features to maintain its momentum.
During the investor call, Zuckerberg expressed satisfaction with Threads’ performance and revealed plans to prioritize user retention and fundamentals before concentrating on its monetization. He drew parallels with their past successes in developing other platforms like Facebook, Instagram, WhatsApp, stories, and reels.
Following the earnings announcement, Meta’s shares experienced a 4% increase in after-hours trade, indicating investor optimism and confidence in the company’s future prospects.”
CNN’s Clare Duffy contributed to this report.