(Reuters) – Meta Platforms, parent company of Facebook, WhatsApp and Instagram, said on Wednesday it expects tighter cost control this year and expects January-March sales that could beat Wall’s expectations. Street.
In post-close trading, the tech giant’s stock jumped 19%. Alphabet and Snap also recorded gains.
Meta cut its full-year 2023 cost forecast by $5 billion and upgraded a $40 billion share buyback program.
The group said it expects revenue for the current quarter to be between $26 billion and $28.5 billion, while analysts on average were expecting $27.14 billion, according to data. IBES from Refinitiv.
This is a relief for Meta, which has had a brutal 2022 between shrinking advertising budgets from companies worried about the economic situation, increased competition from TikTok among young people and new data protection measures. users put in place by Apple that made it difficult to deploy targeted advertising.
Over the October-December period, however, Meta saw its net profit decline to $4.65 billion, or $1.76 per share, from $10.29 billion a year earlier. This is largely due to $4.2 billion in costs including a layoff plan.
(Report Nivedita Balu in Bangalore and Katie Paul in San Francisco; French version Jean Terzian)
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