Meta Platforms Inc. surged after reporting first-quarter revenue that exceeded analysts’ estimates and signaling the beginnings of a recovery in digital advertising.
First-quarter sales rose to US$28.6 billion — a return to growth after three straight quarters of declines. That compared with the US$27.7 billion average analyst projection. Shares gained more than 12 per cent in after-market trading.
Meta, the owner of Facebook, Instagram and WhatsApp is working to move faster while cutting costs in what Chief Executive Officer Mark Zuckerberg has dubbed the “year of efficiency.” A slowdown in advertising demand over the last year forced the social media giant to slash headcount and reduce spending, and sparked scrutiny of the billions Zuckerberg has been investing in virtual reality technology.
Still, there were some setbacks, including in Meta’s division focused on building virtual reality technology for the metaverse. The unit, called Reality Labs, had an operating loss of US$3.99 billion in the quarter, and brought in revenue of US$339 million — down 51 per cent from a year earlier and less than analysts projected.
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