- Meta Platforms reported third-quarter earnings that beat analysts’ revenue and profit estimates.
- In the earnings call, Mark Zuckerberg discussed AI, how Threads is doing, and plans to hire faster in 2024.
- Meta’s CFO said the company is seeing “softer” ad spend in the fourth quarter coinciding with the Israel-Hamas war.
Meta Platforms reported third-quarter earnings after the closing bell Wednesday that beat analysts’ revenue and profit estimates.
The beat was driven by a continued rebound in Meta’s advertising business following a sharp slowdown throughout 2022. Meta’s guidance on its 2023 and 2024 expenses also hit the sweet spot for investors, as it signaled that it can balance its “year of efficiency” cost cutting efforts while it continues to invest in the metaverse and artificial intelligence.
Shares initially jumped in after-hours trading, but dipped into the red as the earnings call progressed. Meta’s stock was trading down more than 3% following the end of the call. Meta CFO Susan Li said the company has seen “softer” ad spend so far in the fourth quarter coinciding with the Israel-Hamas war. Li warned that 2024 will be volatile in terms of the broader economy, and the company is exposed to that as an advertising giant.
