Key Insights
- Shares of Meta on Thursday rose 8.8% to $325 a share.
- Meta said that thanks to the recovery of the advertising business, profits in the current quarter could grow by 20%, the fastest pace since 2021.
- The growth of the company’s shares allowed them to become closer to the record levels at which they were before the “meta-crash” in February last year.
Meta’s share price, the company that owns Facebook and Instagram, is nearing pre-“meta-crash” record levels from February last year, following the release of their recent quarterly report, as reported by Bloomberg.
In Thursday premarket trading, Meta’s shares rose 8.8% to $325 a share.
The day before, the company published a report for the second quarter, in which it reported receiving $32 billion in revenue, which is higher than analysts’ forecasts ($31.1 billion). Meta estimates revenue for the current quarter will be $32 billion to $34.5 billion, also higher than forecast.
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Meta notes that thanks to the recovery of the advertising business, the company’s profit could grow by 20% this quarter, the fastest pace since 2021.
The company’s optimism is also boosted by the success of Reels, a short video software that competes with TikTok, which is attracting more and more users.
However, to return to the record levels of 2021, the company’s shares need to rise in price by another 18%, Bloomberg points out.
[…] Meta Corporation is developing several chatbots with artificial intelligence (AI) with images of various personalities, including Abraham Lincoln, reports the Financial Times. […]