Facebook’s parent company, Meta Platforms, closed the first quarter of the year on Wednesday with a profit of $7.5 billion (€7.1 billion). Investors seem safe.
The result was generally better than the experts expected. The stock is up nearly 9% in what is known as aftermarket trading.
Facebook has managed to increase the number of monthly users by 3% in recent months. In total, the platform has more than 2.9 billion users. The number of daily active users increased by 4% to almost two billion people.
Commodity revenues grew 7% year over year to $27.9 billion. Costs also rose by a third to $19.4 billion, partly due to higher inflation.
However, total spending this year will be slightly lower than the previous estimate. Meta now expects up to $92 billion, while previously up to $95 billion.
Facebook scared investors
Facebook scared off investors in its latest company update as it managed to attract fewer users for the first time in its history. The growth prospects were also disappointing, after which the company lost a quarter of its stock market value.
Commenting on the numbers, Meta CEO Mark Zuckerberg says more people are using Meta’s services than ever before. “I’m proud of how our products serve people around the world.”
Meta also discussed the developments in transatlantic data transmission and its possible impact on European trade. According to Meta, a political deal is being worked on.
The company had previously warned that stopping data transfers could have a devastating effect on the company. The company relies on the processing of user data to serve targeted online advertisements.
Source: NU
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
