Current:Home > BackThe tide appears to be turning for Facebook's Meta, even with falling revenue-LoTradeCoin
The tide appears to be turning for Facebook's Meta, even with falling revenue
View Date:2024-12-23 15:23:05
The tide could be turning for Facebook and Instagram parent company Meta.
CEO Mark Zuckerberg said on a call with investors on Wednesday that the company is doing more with less, including cutting projects that aren't performing well and using AI tools to help engineers be more productive.
The company's shares shot up nearly 20% in after hours trading, a major shift from where the company has been over the last few months. Throughout 2022, Meta, which also owns WhatsApp, lost more than $600 billion in market value.
The company exceeded Wall Street's expectations on Wednesday by reporting $32.2 billion in revenue for the last three months of 2022, but that was still a 4% drop in revenue from the same time last year. This is the third quarter in a row where the company's revenue has declined.
To make up for those losses, Zuckerberg said his goal was to work on "efficiency" this year.
"We're focused on becoming a stronger and more nimble organization," he said in a statement.
Already, Meta announced in November it was cutting 11,000 employees, 13% of its workforce, and on Wednesday Zuckerberg said it will continue "flattening" its organization structure and "removing some layers of middle management." It will also consolidate several office buildings and cancel multiple data center projects.
Still, the company has not cut spending everywhere.
On the call, it announced a plan to buy back $40 billion of its stock.
And while cutting real-world capital costs, it is still investing heavily in the Metaverse — a futuristic alternate-reality world. The company increased spending by 22% from a year ago, according to its earnings report, and Zuckerberg said it was focusing on the Metaverse.
"Our priorities haven't changed since last year," Zuckerberg said on the call. "We are setting the standard for the industry with our meta reality system."
Facebook's earnings come the day before Alphabet and Amazon's reports. Both companies have also laid off thousands of employees over the past few weeks and have seen plummeting share prices.
veryGood! (2494)
Related
- Gold is suddenly not so glittery after Trump’s White House victory
- Tyreek Hill injury updates: Will Dolphins WR play in Week 10 game vs. Rams?
- Stocks rally again. Dow and S&P 500 see best week this year after big Republican win
- Colorado, Deion Sanders control their own destiny after win over Texas Tech: Highlights
- Mike Tyson vs. Jake Paul referee handled one of YouTuber's biggest fights
- Board approves Arkansas site for planned 3,000-inmate prison despite objections
- 1 monkey recovered safely, 42 others remain on the run from South Carolina lab
- Barry Keoghan Has the Sweetest Response to Sabrina Carpenter's Grammy Nominations
- Pistons' Ausar Thompson cleared to play after missing 8 months with blood clot
- New LA police chief sworn in as one of the highest-paid chiefs in the US
Ranking
- Repair Hair Damage In Just 90 Seconds With This Hack from WNBA Star Kamilla Cardoso
- Judge says New York can’t use ‘antiquated, unconstitutional’ law to block migrant buses from Texas
- Ohio family builds 50,000-pound Stargate with 'dial-home device' to scan the cosmos
- California Gov. Newsom fined over delays in reporting charitable donations
- Climate Advocacy Groups Say They’re Ready for Trump 2.0
- Stocks rally again. Dow and S&P 500 see best week this year after big Republican win
- Horoscopes Today, November 8, 2024
- Democrat Andrea Salinas wins reelection in Oregon’s 6th District
Recommendation
-
Why Game of Thrones' Maisie Williams May Be Rejoining the George R.R. Martin Universe
-
2 men accused of plotting to shoot at immigrants are convicted of attempting to kill federal agents
-
A Timeline of Brianna Chickenfry LaPaglia and Zach Bryan's Breakup Drama
-
ACLU asks Arizona Supreme Court to extend ‘curing’ deadline after vote-count delays
-
Mattel says it ‘deeply’ regrets misprint on ‘Wicked’ dolls packaging that links to porn site
-
Haul out the holly! Rockefeller Center Christmas Tree arrives in New York City
-
Florida men's basketball coach Todd Golden accused of sexual harassment in Title IX complaint
-
Officer responding to domestic disturbance fires weapon; woman and child are dead in Missouri suburb