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3 weeks ago
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Meta Platforms handily beat Wall Street analysts’ estimates in the third quarter, offering an upbeat view of the holiday quarter as its social networks combined to reach almost 3.3 billion daily users.
Earnings per share jumped 37% from the year-earlier period to $6.03 on a diluted basis, with total revenue climbing 19% to $40.6 billion. Analysts had called for EPS of $5.25 and revenue of $40.29 billion.
The number of daily active users across Facebook, Instagram and WhatsApp reached 3.29 billion, up 5% from the year-ago quarter. While Meta changed its name in 2022 to reflect its strategic shift toward the metaverse, that part of the company continues to be an unprofitable project designed to help future-proof the overall business.
Meta said it expects fourth quarter revenue of $45 billion to $48 billion, an uptick during the holiday period that could help offset significant ongoing spending in areas like virtual reality and artificial intelligence.
Full-year 2024 capital expenditures will come in at $38 billion to $40 billion, the company estimated, which is a slight uptick over prior guidance for $37 billion to $40 billion.
The social media sector got a major validation earlier this week when Reddit posted its first profit since going public in 2023. Investors sent its stock roaring up 40% on Wednesday. Similar enthusiasm greeted Snap Inc.’s solid financial results on Tuesday, as well as its plan to release a simplified, more user- and advertiser-friendly version of its Snapchat app.
Meta’s quarterly report had been hotly anticipated given the market’s overall embrace of technology, particularly artificial intelligence. Amazon and Apple will report their results on Thursday.
