Meta Platforms, the parent company of Facebook, exceeded expectations with its second-quarter earnings and projected strong revenues for the third quarter, leading to a surge in after-hours trading. The company reported a profit of $2.98 per share for the three months ending in June, a 21.1% increase from the same period last year and surpassing the consensus forecast of $2.92 per share. Revenues rose 2.9% to $32 billion, primarily driven by the new ‘Family of Apps’ division. Ad impressions increased by 34%, although the average price per ad decreased by 16%. Meta unveiled new AI tools last month and has been testing generative AI techniques with advertisers.
Facebook’s daily active users increased by 5% to 2.06 billion, while monthly active users grew by 3% to 3.03 billion. Looking ahead to the current quarter, Meta expects revenues ranging from $32 billion to $32.5 billion, surpassing the Street forecast of $31.3 billion. Despite the positive results, Meta’s division focused on the metaverse, called Reality Labs, continues to experience significant operating losses. In the last quarter, the division reported operating losses of $3.74 billion with revenues of only $276 million.
Following the earnings announcement, Meta’s shares rose by 5% in after-hours trading, indicating an opening bell price of $313.50 per share on Thursday. CEO Mark Zuckerberg expressed satisfaction with the results, noting strong engagement across their apps and an exciting roadmap including forthcoming products like Llama 2, Threads, Reels, new AI offerings, and the fall launch of Quest 3.
To maintain journalistic integrity, it is essential to provide a balanced view of the topic. While Meta Platforms achieved impressive financial results, it is important to highlight the ongoing losses in the Reality Labs division. By incorporating different perspectives and opinions, the article can provide a comprehensive overview for readers. Proper proofreading will eliminate any grammatical or spelling errors, ensuring a high-quality, professional article that adheres to the guidelines provided.
Frequently Asked Questions (FAQs) Related to the Above News
What was Meta Platforms' second-quarter profit per share?
Meta Platforms reported a profit of $2.98 per share for the three months ending in June.
How does this profit compare to the same period last year?
The profit per share increased by 21.1% compared to the same period last year, exceeding expectations.
What were Meta Platforms' second-quarter revenues?
Meta Platforms' revenues for the second quarter were $32 billion, indicating a 2.9% increase.
What division primarily drove Meta Platforms' revenue growth?
The 'Family of Apps' division was the primary driver of Meta Platforms' revenue growth in the second quarter.
What were the changes in ad impressions and average price per ad for Meta Platforms?
Ad impressions increased by 34%, while the average price per ad decreased by 16%.
How did Facebook's active user base change in the second quarter?
Facebook's daily active users grew by 5% to 2.06 billion, and monthly active users increased by 3% to 3.03 billion.
What are Meta Platforms' revenue expectations for the third quarter?
Meta Platforms projects revenues ranging from $32 billion to $32.5 billion for the third quarter, surpassing market expectations.
What were the operating losses for Meta's Reality Labs division in the second quarter?
The Reality Labs division of Meta Platforms reported operating losses of $3.74 billion in the second quarter.
What were the revenues for Meta's Reality Labs division in the second quarter?
The revenues for Meta's Reality Labs division in the second quarter were only $276 million.
How did Meta Platforms' shares perform following the earnings announcement?
Meta Platforms' shares rose by 5% in after-hours trading after the earnings announcement.
What was the opening bell price per share for Meta Platforms on Thursday?
The opening bell price per share for Meta Platforms on Thursday was $313.50.
What upcoming products and plans did CEO Mark Zuckerberg mention?
CEO Mark Zuckerberg mentioned forthcoming products like Llama 2, Threads, Reels, new AI offerings, and the fall launch of Quest 3 as part of an exciting roadmap for Meta Platforms.
What important aspect should be highlighted to provide a balanced view?
It is important to highlight the ongoing losses and challenges in Meta Platforms' Reality Labs division to provide a balanced view of the company's overall performance.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
