As expected, Facebook parent company Meta reported lower profit and revenue for the fourth quarter on Wednesday, due to a decline in the online advertising market and competition from rivals like TikTok.
Revenue topped Wall Street’s modest expectations, and the Menlo Park, California-based company announced a $40 billion stock buyback, sending the stock soaring in extended trading.
For the last three months of 2022, Meta Platforms Inc. reported earnings of $4.65 billion, or $1.76 per share. That is 55 percent less than the previous year’s total of $10.29 billion, or $3.67 per share.
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According to a survey conducted by FactSet, experts predicted earnings per share of $2.26.
From $33.67 billion, revenues dropped to $32.17 billion, a decline of 4 percent. $31.55 billion was the consensus estimate among experts.
Post-market trading saw a nearly 18% increase in Meta shares.