Meta (Facebook, Instagram, WhatsApp) posted $5.7 billion in net profit in the first quarter, down 24% year-on-year, but better than market expected after massive layoffs and in an unfavorable economic environment . According to its results release published on Wednesday, the Californian group saw its turnover increase slightly over the period, to 28.65 billion dollars, after three consecutive quarters of decline. Its title took more than 8% during electronic trading after the closing of the New York Stock Exchange.
“Meta has started to recover from the disaster that was 2022, but it remains in bad shape,” commented Insider Intelligence analyst Debra Aho Williamson. “It’s a shadow of itself compared to the company that has established itself as a digital leader for the past 15 years.” In 2022, the Californian group experienced two firsts since its IPO in 2012: its advertising revenues declined and Facebook lost users (before regaining them).
Meta’s revenues are hurt by shrinking advertiser budgets due to inflation (and rising interest rates), competition from TikTok and regulatory changes from Apple, which are limiting network capabilities social media to collect user data allowing them to sell ultra-targeted advertisements.
