Meta Platforms forecast third-quarter revenue above market expectations on Wednesday, sending shares up on the suggestion that it anticipated higher ad spending consequently of an improving macroeconomic environment.
The corporate expects July-September revenue within the range of $32 billion to $34.5 billion, compared with analysts’ average estimate of $31.30 billion, in line with Refinitiv data.
“We proceed to see strong engagement across our apps and we now have essentially the most exciting roadmap I’ve seen shortly with Llama 2, Threads, Reels, recent AI products within the pipeline, and the launch of Quest 3 this fall,” said Mark Zuckerberg, Meta’s chief executive.
The revenue bump comes despite the corporate also forecasting that expenses would rise in each 2023 and 2024, citing costs including legal fees and increased spending on infrastructure considered key to the tech sector’s feverish AI race.
“We proceed to see strong engagement across our apps,” CEO Mark Zuckerberg said.Getty Images for SXSW
The corporate expects July-September revenue within the range of $32 billion to $34.5 billion, above analysts estimates.REUTERS
Shares initially surged 7% in after-hours trading before dropping back to around 2% above closing price.
Meta also beat second-quarter revenue estimates.
Revenue grew 11% to $32 billion within the quarter ended June, in comparison with analysts’ average estimate of $31.12 billion.
