Meta, signals of strength to the market. Revenues grow again, artificial intelligence at the heart of the business

Return to revenue growth, solidity of the accounts after the large cuts linked to the unprecedented layoffs, focus on artificial intelligence and the Metaverse campaign still open. Meta, the Facebook, WhatsApp and Instagram company, sent signs of reassurance to the market which it appreciated by buying the stock after the official Wall Street negotiations. Another piece of Big Tech, after the encouraging accounts of Microsoft and Google.

After three quarters of decline, sales returned to point upwards and shares managed to gain 12% adding more than 50 billion of capitalization in the after-hours market. Positive sensations also from the recovery of the advertising activity.

In the three months to March 31, therefore, revenues increased by 3% to 28.645 billion dollars, with expectations at 27.65 billion: it was the first increase in almost a year. Operating profit dropped 15% to $7.227 billion. Net income fell 24% to $5.709 billion, with EPS dropping 19% to $2.20 per share, versus expectations for $2.03. Operating margin fell from 31% to 25%. Commenting on the quarter, which saw a $9.22 billion Class A share repurchase, Zuckerberg remarked that it was “good” and “our community continues to grow.” The number of daily active users on Facebook increased by 4% from a year earlier to an average of 2.04 billion, versus expectations for 2.01 billion; the monthly one grew by 2% to 2.99 billion, in line with the consensus. The founder had spoken of 2023 as the year of efficiency and the employees have noticed this, the uci number has decreased by 1% to 77,114.

The indications for the second quarter are also positive: Meta forecasts revenues of between 29.5 and 32 billion dollars, while analysts forecast revenues of 29.5 billion. Since the start of the year, Meta’s stock is up 72%, after losing nearly two-thirds of its value in the past year.

Focus therefore on the lines of development. “Our work on artificial intelligence is paying off. We are also becoming more efficient, so we can build better products faster, putting us in a stronger position to deliver on our long-term vision,” he added. Right on the AI ​​there was great curiosity. Zuckerberg has outlined a vision that implements it both in making its platform more attractive to users, both in internal processes and in the advertising platform, as Google is also studying to do. Since the company launched Reels, notes the Financial Times, to rival TikTok, the suggestions dictated by intelligent machines have allowed to collect a +24% of the time spent by users on Instagram. Zuckerberg then explained that Meta is working on new AI-powered features such as “visual creation tools” for Instagram and “AI agents” for business messaging. He added that the company is open to “generative” intelligence, which will help advertiser companies create personalized ads. In any case, after the investments of the last few years, it is now time for Zuckerberg to put Meta’s artificial intelligence capacity to good use.

Which doesn’t mean Zuckerberg wants to leave the Metaverse. Indeed, he reaffirmed his commitment to populate the world of digital avatars, denying that the idea was to declare defeat in that game.