technology
Meta Exceeds Earnings and Earnings Expectations in First Quarter
(Reuters) – The company’s stock surged nearly 14% on Thursday after extending its winning streak, after Meta’s AI focus and cost-cutting cheered investors.
Meta, whose stock has traded at a more than one-year high, is set to add nearly $80 billion to its market valuation and overtake Nvidia Corp as the top performing company in the S&P 500 index on a year-to-date basis. get a hold.
The rise has also sent other tech companies up as much as 3.1%, from Snap and Pinterest to Amazon.com.
“If you want to be treated and valued like a growth stock, you need growth! “Just as questions about a potential recession grow.” .
Meta beat expectations for first-quarter earnings and earnings, rising for the first time in almost a year. It’s the latest sign that America’s tech giant is emerging from a recession that has laid off tens of thousands of workers.
The results also underscore the growing importance of AI, which CEO Mark Zuckerberg says is helping drive more traffic to Facebook and Instagram, which in turn drives more advertising revenue. increase.
Analysts at JP Morgan believe AI has played a key role in moving from limited meta friends, family and followed content to nearly unlimited recommended content available on reels and feeds. There are,” he said.
Zuckerberg also said the company, which has undergone several costly overhauls to bolster its core business, is no longer lagging behind building out its AI infrastructure.
Shares of America’s biggest tech companies, including Apple, Microsoft, Amazon and Alphabet, are up about a quarter so far this year after a slump in 2022.
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