Facebook owner Meta platforms (Meta) reported fourth-quarter results late Wednesday that beat earnings as the company struggled through its most difficult period since its founding 19 years ago. Meta shares rose as the company announced a $40 billion share buyback.
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Also, Meta provided earnings guidance that beat estimates. For its first quarter, the company expects revenue of $26 billion to $28.5 billion. The median of $27.4 billion is higher than the median of $27.1 billion.
The company reported adjusted earnings per share of $1.76 on revenue of $32.16 billion. Analysts were expecting revenue of $31.55 billion, according to FactSet.
Meta shares rose 17.9% to 180.85. Stock market today.
Tough year for meta
The earnings report comes amid a very difficult year for Meta, which announced plans in November 11,000 jobs were cut. 13% of Meta’s workforce is in job cuts. Meta said it announced a $40 billion increase in its stock authorizations on Wednesday.
Just like any other social media company Snap (SNAP), Etsy (ETSY) and Pinterest (Pins), the meta is challenged not only by macroeconomic weakness but also by the painful decline of digital advertising, which accounts for almost all of its revenue.
Further evidence of these challenges was evident Fourth Quarter Earnings Reporting by Snap, the owner of Snapchat, was hit after disappointing results. Snap stock fell 10.3% to close at 10.37 on Wednesday.
Privacy changes deal with meta stack
Meta lost about $10 billion in ad revenue last year Apple (APL) changed the privacy policies for the iPhone. That change made it more difficult to precisely target users with ads.
But the company made technological improvements through its advertising strategy approach. In a note to clients, Credit Suisse analyst Stephen Zhu said he expected “gradual improvements in Meta’s revenue dollar growth” as a result.
It also plans to pour billions into its development, known as MetaWares.
There is a meta role Relative strength rating is 72 Out of 100.
Follow Brian Deacon on Twitter @IBD_BDeagon Learn more about tech stocks, analytics and financial markets.
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