Shares of Facebook parent company Meta Platforms (FB) are up 18% in premarket trading on
news of better than expected first quarter earnings.
Specifically, investors like that Facebook added more users than projected in Q1, lessening
concerns that the company is losing momentum as consumers turn to other social media sites
such as TikTok.
Meta Platforms reported 1.96 billion daily users for Facebook, a return to growth after the first-
ever decline in the previous quarter. Analysts had estimated 1.94 billion Facebook users. The
company’s Q1 revenue rose 6.6% to $27.9 billion U.S.
Prior to today’s big move higher, Meta Platforms stock had fallen 50% this year to $174.95 U.S.
a share after the previous fourth quarter 2021 results missed Wall Street expectations and
prompted concerns that advertising in the company’s social media feeds was slowing.
Those concerns appear to have been put to rest — at least for now — given Facebook added 31
million new daily active users in the first quarter.
Meta Platforms net income in the first quarter was $7.47 billion U.S., or $2.72 U.S. a share.
Analysts had estimated earnings of $2.56 U.S. per share.
Looking ahead, Meta Platforms said sales in the current second quarter will be $28 billion U.S.
to $30 billion U.S., compared with the $30.7 billion U.S. analysts had forecast. Meta said that
due to its revenue outlook, it is paring overall spending plans for the year to $87 billion U.S. to
$92 billion U.S. from a previous target of as much as $95 billion U.S.