Shares of the company rose 15 percent in after-hours trading.
Shares of Meta Platforms Inc rose on Wednesday as Facebook’s quarterly daily active users were above Wall Street estimates, even as Meta posted its slowest revenue growth in a decade.
Shares of the social media giant rose 15 percent in extended trading.
Earnings far exceeded Wall Street targets at $2.72 a share, compared with an analyst consensus of $2.56, according to IBES data from Refinitiv.
Daily active users, a key metric for advertisers indicating activity on Facebook, were 1.96 billion, up slightly from the 1.95 billion estimate, according to IBES data from Refinitiv. Monthly active users came in at 2.94 billion, below Wall Street estimates by 30 million.
Meta has lost about half its value since the beginning of the year, following dismal results in February when it first reported a decline in Facebook’s daily active users and forecast a dismal quarter, blaming factors including price changes. privacy from Apple and increased competition from platforms like ByteDance’s TikTok.
In its latest results, Meta forecast second-quarter revenue of between $28 billion and $30 billion. Analysts on average had expected revenue for the current quarter of $30.63 billion.
Total revenue, most of which came from ad sales, rose 7 percent to $27.91 billion in the first quarter but fell short of analyst estimates of $28.2 billion, according to IBES data. from Refinitiv.
Net income fell 21 percent to $7.47 billion in the first quarter, but beat analyst estimates of $7.15 billion, according to IBES data from Refinitiv.
Meta forecast second-quarter revenue between $28 billion and $30 billion, citing factors including the war in Ukraine. Recent earnings reports from Google parent Alphabet Inc. and Snap Inc. have pointed to the impact of the global economic crisis on digital ad spending.
Meta lowered its total expected 2022 spending to between $87 billion and $92 billion, down from its previous outlook of $90 billion to $95 billion.