META: Meta Stock Jumps as Revenue Beats Forecast, Earnings Pop 73% to $13.5 Billion

Metaverse unit lost $4.5 billion last quarter, bringing total losses since 2020 to $50 billion. Zuckerberg isn’t giving up hope.

• Meta stock META powered higher by 7% in off-hours trading before the opening bell on Thursday. The Facebook parent reported a solid spring quarter with a comfortable beat on both earnings and revenue expectations after market close on Wednesday. The gist of it — earnings soared 73% to $13.5 billion, or $5.16 a share, gliding past estimates of $4.80 a share. Revenue rose 22% to $39.1 billion, beating analysts’ consensus views of $38.3 billion. At the same time, costs only jumped 7%, widening the profit margin.
• More numbers time: daily active users swell 7% year-on-year to 3.3 billion. Ad impressions increased 10% and ad prices got 10% more expensive on average. Meta’s metaverse unit, Reality Labs, generated some $4.5 billion in losses for the three months to June. The burned pile of cash adds to a dumpster fire of $50 billion incinerated since the unit’s inception in 2020. But, hey, that’s not important when you have AI.
• The big theme right now is, of course, AI,” CEO Mark Zuckerberg said in the earnings call discussion. AI enhancements across the suite of platforms, including Instagram, WhatsApp and Facebook, is driving increased engagement, Meta chief said (probably wearing another epic gold chain?) as he defended the company’s massive spending on AI. Shares of the social media giant are up 37% on the year, ahead of today’s implied gain at the opening bell.