Current:Home > FinanceThe 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:2024-12-24 00:51:44
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! (57888)
Related
- Deebo Samuel explains 'out of character' sideline altercation with 49ers long snapper, kicker
- Savannah Chrisley Shares Update on Mom Julie Chrisley's Prison Release
- Biden to give extended interview to ABC News’ George Stephanopoulos on Friday
- Pepsi Pineapple is back! Tropical soda available this summer only at Little Caesars
- Nelly will not face charges after St. Louis casino arrest for drug possession
- Usher acceptance speech muted in 'malfunction' at BET Awards, network apologizes: Watch video
- Oklahoma St RB Ollie Gordon II, who won Doak Walker Award last season, arrested for suspicion of DUI
- Video shows man leave toddler on side of the road following suspected carjacking: Watch
- Prayers and cheeseburgers? Chiefs have unlikely fuel for inexplicable run
- From fake rentals to theft, scammers are targeting your car
Ranking
- Man charged with murder in fatal shooting of 2 workers at Chicago’s Navy Pier
- Oklahoma State RB Ollie Gordon II arrested on accusations of DUI, per reports
- Powerball winning numbers for July 1 drawing: Jackpot rises to $138 million
- In wake of Supreme Court ruling, Biden administration tells doctors to provide emergency abortions
- 2 credit unions in Mississippi and Louisiana are planning to merge
- New grand jury transcripts released in Jeffrey Epstein case reveal prosecutors knew about accusations against him
- Blind artist who was told you don't look blind has a mission to educate: All disabilities are a spectrum
- Woman dies from being pushed into San Francisco-area commuter train
Recommendation
-
5-year-old boy who went missing while parent was napping is found dead near Oregon home, officials say
-
A dozen Republican-led states are rejecting summer food benefits for hungry families
-
NBA free agency tracker: Klay Thompson to Mavericks; Tatum getting record extension
-
Andy Murray pulls out of Wimbledon singles competition, but will play doubles
-
NBPA reaches Kyle Singler’s family after cryptic Instagram video draws concern
-
16-year-old Quincy Wilson becomes youngest American male track Olympian ever
-
Indiana Rep. Victoria Spartz charged with weapons violation at Virginia airport
-
Pepsi Pineapple is back! Tropical soda available this summer only at Little Caesars