Facebook’s parent company, Meta, reveals signs of regrowth after the financial collapse
The parent company of Instagram, Facebook, and WhatsApp, Meta, revealed the firm grew by 3% in revenue in the first 3 months of 2023 compared with the same period last year.
It also claims that around three billion people use at least one social media app daily, which is 5% more than a year ago.
The increases coincide with a broader upturn in the company’s stock as some investors support chief executive Mark Zuckerberg’s drive to reduce expenses and refocus the digital giant.
In recent months, he announced thousands of job losses and proclaimed 2023 to be a “year of efficiency.”
These actions were taken after the company battled declining income last year as a result of greater competition from TikTok, privacy measures at Apple, and a general fall in advertising expenditure.
This year has gotten off to a “more powerful than expected start,” according to “Insider Intelligence lead analyst,” Debra Aho Williamson, and the company’s outlook for the upcoming months indicates that things may “be beginning to come out of the shadows.”
“In this financial climate—and after the economic collapse in 2022—3% revenue growth compared with last year is an accomplishment,” she remarked. She did, however, add that the company can’t manage to sit still”.
The financial markets have been keenly monitoring the top tech companies’ performance since they have a significant impact on changes in the main US stock indices.
Alphabet, owner of Google and Microsoft, also reported better results than anticipated earlier this week.
In the three months that ended in March, according to Meta, it generated $28.6 billion in revenue, marking the first quarterly increase in almost a year. It posted profits for the quarter of $5.7 billion, a 24% decrease from the same period last year.