Meta is staging a huge comeback
on Wednesday reported a strong rise in advertising revenue, topping Wall Street financial targets for the second quarter and forecasting third-quarter revenue above market expectations.from Meta, Facebook’s parent company, come a day after a strong performance from Google and make the case that consumers, and the advertisers eager to reach them, are spending despite broad economic concerns.
Ad revenue rose 12% in the quarter, faster than growth at Google, where ad revenue rose 3%. Adjusted earnings per share of $2.98 topped Wall Street targets of $2.91, according to data from Refinitiv.The social media giant has been climbing back from a bruising 2022, buoyed by hype around emerging AI technology and an austerity drive in which it has shed around 21 000 employees in the last year. The company’s shares have more than doubled in value this year as a result.
The revenue gains provide relief as Meta makes massive investments to upgrade its data centres and stay competitive in an emerging arms race around AI technology, while continuing to invest more than $10-billion/year in a longer-term bet on “metaverse” hardware and software.Meta cut its capital expenditure forecast for 2023, driven in part by pushing some costs related to AI into 2024, when capex is expected to grow.
“We want this to be open. But if you’re someone like Microsoft or Amazon or Google and you’re going to basically be reselling these services, that’s something that we think we should get some portion of the revenue for,” Zuckerberg said.
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