Wednesday, July 26, 2023

Meta has strong second quarter behind Reels, layoffs


Net income in the second quarter was $7.8 billion, or $2.98 per share, compared with the $2.92-per-share average analyst estimate. More than 3 billion people use at least one of Meta’s products every day, the company said.

Meta shares rose as high as $325 in extended trading, after closing at $298.57.

Investments in artificial intelligence, as well as the company’s virtual reality efforts, have continued to be expensive, despite the efficiency mandate. Meta said total expenses will be $88 billion to $91 billion in 2023, more than prior projections. 

The Reality Labs division, which is in charge of realizing Zuckerberg’s vision for the metaverse, will have “meaningfully” greater losses this year than it did last year, the company said, citing the costs of product development and growing the technology.

“While Meta may be talking less about the metaverse these days, it is still determined to make the metaverse a reality, and the massive losses in its Reality Labs division are adding up,” Debra Aho Williamson, an analyst at Insider Intelligence, wrote in a note.



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