Meta Stock Jumps After Company Posts 11% Revenue Growth

Meta Platforms, Facebook's parent company, reported a higher-than-expected increase in quarterly revenue on Wednesday, with figures reaching $32 billion for the quarter ending in June. This 11% uptick compared to the same quarter in the previous year, signaled the tech giant's continued financial recovery.

After a challenging 2022 marked by revenue declines, this quarter's robust results bring a second straight quarter of revenue growth for Meta. Profits for the quarter also showed a positive trend, with a 16% increase year-over-year, totaling $7.79 billion.

The company also announced an uptick in user activity, with daily active users on Facebook growing to 2.06 billion, a 5% rise compared to last year. There was also a 3% increase in Facebook's monthly active user base year-over-year.

Earlier this year, CEO Mark Zuckerberg pledged to steer the company toward a "year of efficiency." This followed the company's third quarterly revenue decline, which capped a tough year. Meta grappled with fierce competition, the fallout from Apple's privacy updates, and a downturn in digital advertising expenditure due to macroeconomic instability. 

In an unprecedented move last November, Meta announced plans to cut 11,000 jobs. This marked the most substantial single round of layoffs in the company's history. Zuckerberg further announced in March that another 10,000 employees would be let go. Following the release of these earnings results, Meta's shares saw a 4% increase in after-hours trading.

The strong financial performance confirms a resurgence in the demand for digital advertising and a surge of investor interest in AI technology.