Meta Share Price Jumps on Q1 Earnings Beat, Zuckerberg Touting AI

Meta shares jumped in Thursday̵[ads1]7;s premarket after the tech giant’s earnings beat Wall Street expectations.
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  • Meta shares rose 11% in Thursday’s premarket after earnings beat Wall Street expectations.
  • The social media giant reported revenue growth after three consecutive quarters of decline.
  • CEO Mark Zuckerberg touted AI and vowed to keep costs down during Meta’s “years of efficiency.”

Meta Platforms stock jumped in premarket trading Thursday after the tech giant’s first-quarter earnings beat Wall Street expectations. CEO Mark Zuckerberg also discussed the tech giant’s AI plans, promising to keep costs low as the owner of Facebook, WhatsApp and Instagram continues its “year of efficiency.”

Shares of the social media titan climbed 11% ahead of the opening bell, trading just under $233 a share at 4:30 a.m. ET.

Investors boosted Meta’s stock after it reported earnings of $2.20 per share after Wednesday’s closing bell, beating the $2.03 per share figure predicted by analysts, according to Refinitiv. Revenue also grew 3% year over year to $28.65 billion, reversing three consecutive quarters of decline.

In a post-earnings call, Mark Zuckerberg praised the company’s AI efforts and vowed to keep a lid on spending. The Meta founder and CEO said AI recommendations had led to people spending over 24% more time on Instagram since it launched TikTok rival Reels.

He added that he plans to slow hiring in 2023 to control costs. Meta has already laid off tens of thousands of workers over several rounds of layoffs.

“When we started this work last year, our business was not performing as well as I wanted,” Zuckerberg told analysts. “But now we are increasingly doing this work from a position of strength.”

“Even as our financial position improves, I continue to believe that slowing hiring, flattening our management structure, increasing the percentage of our company that is technical and more rigorously prioritizing projects will improve the speed and quality of our work,” he added.

Meta has been one of the best performing stocks in 2023. It was up 74% year-to-date, even before Wednesday’s strong performance led to a further rally.

If its premarket gains hold until Thursday’s closing bell, it will add about $60 billion to its market cap.

Read more: Mark Zuckerberg says people spent 24% more time on Instagram after Meta launched AI-powered Reels

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