Facebook is seeing slower growth, but Meta's stock surges nearly 20% after hours.
Meta Platforms Inc. is the latest tech giant to feel an economic pinch, as Facebook’s parent company reported its slowest sales growth in a decade Wednesday and issued lukewarm revenue guidance.
Nonetheless, Meta’s stock FB, -3.32% jumped nearly 20% in after-hours trading Wednesday, after the company formerly known as Facebook disclosed first-quarter earnings of $7.47 billion, or $2.72 a share, down from $9.5 billion, or $3.30 a share last year, on sales of $27.9 billion, up 7% from $26.2 billion a year ago.
Meta issued a second-quarter revenue forecast of $28 billion to $30 billion, while analysts were forecasting $30.7 billion. Facebook executives have cited inflation, supply-chain issues, the war in Ukraine, European economic headwinds, increased competition from services such as TikTok and changes Apple Inc. AAPL, -0.15% made to its mobile operating system that make it more difficult for apps to track consumers in ads.
In the webcast presentation, Zuckerberg acknowledged the impact of TikTok and Apple, but said Meta was confident in its Reels short-form videos and artificial intelligence to address each company, respectively. He added that the company’s push into metaverse will also boost revenue, especially in advertising.
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