Meta Platforms Inc., the parent company of Facebook, has beaten Wall Street’s expectations with its Q1 earnings. The company posted better-than-expected profits and revenues in the first quarter of 2023, causing its shares to soar by 12%.
According to a report by Livemint, Meta Platforms reported first-quarter earnings of $3.2 billion, or $1.10 per share, exceeding analysts’ expectations of $0.93 per share. The company’s revenue for the quarter was $13.7 billion, up 47% from the same period last year and above Wall Street’s forecast of $12.8 billion.
This impressive performance can be attributed to Meta’s continued growth in advertising revenue. The company’s advertising revenue for Q1 was $13.4 billion, up 48% from the same period in the previous year. Notably, Meta’s total expenses for the quarter were $9.5 billion, up by 45%.
Meta Platforms’ CEO, Mark Zuckerberg, stated that the company’s strong Q1 performance is a result of the investments made in the company’s suite of products and services. These investments include the creation of its Metaverse platform, which has seen increased interest from both users and advertisers. Zuckerberg also emphasized the importance of sustainability to the company’s future growth and shared that Meta is committing to becoming a net-zero emissions company by 2030.
Investors have responded positively to the news, with Meta’s shares rising by 12% following the earnings report. The company’s stock is expected to continue to perform well, with an earnings ESP of +7.78%. It is also worth noting that Meta Platforms currently carries a Zacks Rank of #1, indicating a strong buy recommendation.
In summary, Meta Platforms Inc.’s impressive Q1 earnings report has surpassed Wall Street’s expectations and caused its shares to soar. With continued investment in products and services, as well as a focus on sustainability, Meta Platforms is likely to continue its growth trajectory and remain a top-performing company.