Facebook parent Meta Platforms Inc on Wednesday reported better-than-expected profit in the recently ended quarter, calming investors worried about the toll of competition from TikTok and eased COVID-19 pandemic restrictions.
Meta said it made a profit of US$7.5 billion on revenue of US$27.9 billion in the first three months of this year, sending its shares up more than 18 percent in aftermarket trading.
“We made progress this quarter across a number of key company priorities, and we remain confident in the long-term opportunities and growth that our product roadmap will unlock,” Meta chief Mark Zuckerberg said.
Photo: Reuters
The average number of people using Facebook monthly rose 3 percent to 2.94 billion by the end of March, while 3.64 billion people used at least one member of Meta’s family of apps each month, the tech giant reported.
Meta owns Facebook, Messenger, WhatsApp, Instagram and virtual reality firm Oculus.
“More people use our services today than ever before, and I’m proud of how our products are serving people around the world,” Zuckerberg said.
Investors had been worried that as the pandemic eased and people socialized more in real life that they would engage less on Facebook. There were also concerns about competition from video sharing sensation TikTok.
Zuckerberg has cited pressure from TikTok, and launched his own short-form video sharing feature Reels which has seen fast growth on Facebook and Instagram.
“Video is the main way that people experience content online,” Zuckerberg said on an earnings call.
Reels accounts for more than a fifth of the time that people spend on image-centric social network Instagram, Zuckerberg told analysts.
Meta said it ended the quarter with 77,805 employees, an increase of 28 percent from a year earlier.
Meta has been investing heavily in a future that Zuckerberg believes will include spending time in immersive virtual worlds referred to as the metaverse. It has a Reality Labs unit devoted to what he has predicted is the future of the Internet.
The metaverse is a 3D virtual world where people will be able to interact using sensors, head gear and other gadgets, but doubts have swirled about whether the major metaverse investments will pay off for Meta.
Meta’s early metaverse platform, called Horizon Worlds, already allows people to socialize virtually while represented by avatars.
“Over the next several years, our goal from a financial perspective is to generate sufficient operating income growth from our family of apps to fund the growth of investment in Reality Labs, while still growing our overall profitability,” Zuckerberg said. “Now, unfortunately, that’s not gonna happen in 2022, given the revenue headwinds.”
European Central Bank (ECB) President Christine Lagarde is expected to step down from her role before her eight-year term ends in October next year, the Financial Times reported. Lagarde wants to leave before the French presidential election in April next year, which would allow French President Emmanuel Macron and German Chancellor Friedrich Merz to find her replacement together, the report said, citing an unidentified person familiar with her thoughts on the matter. It is not clear yet when she might exit, the report said. “President Lagarde is totally focused on her mission and has not taken any decision regarding the end of
French President Emmanuel Macron told a global artificial intelligence (AI) summit in India yesterday he was determined to ensure safe oversight of the fast-evolving technology. The EU has led the way for global regulation with its Artificial Intelligence Act, which was adopted in 2024 and is coming into force in phases. “We are determined to continue to shape the rules of the game... with our allies such as India,” Macron said in New Delhi. “Europe is not blindly focused on regulation — Europe is a space for innovation and investment, but it is a safe space.” The AI Impact Summit is the fourth
CONFUSION: Taiwan, Japan and other big exporters are cautiously monitoring the situation, while analysts said more Trump responses ate likely after his loss in court US trading partners in Asia started weighing fresh uncertainties yesterday after President Donald Trump vowed to impose a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he used to launch a global trade war. The court’s ruling invalidated a number of tariffs that the Trump administration had imposed on Asian export powerhouses from China and South Korea to Japan and Taiwan, the world’s largest chip maker and a key player in tech supply chains. Within hours, Trump said he would impose a new 10 percent duty on US imports from all countries starting on
STRATEGIC ALLIANCE: The initiative is aimed at protecting semiconductor supply chain resilience to reduce dependence on China-dominated manufacturing hubs India yesterday joined a US-led initiative to strengthen technology cooperation among strategic allies in a move that underscores the nations’ warming ties after a brief strain over New Delhi’s unabated purchase of discounted Russian oil. The decision aligns India closely with Washington’s efforts to build secure supply chains for semiconductors, advanced manufacturing and critical technologies at a time when geopolitical competition with China is intensifying. It also signals a reset in relations following friction over energy trade and tariffs. Nations that have joined the Pax Silica framework include Japan, South Korea, the UK and Israel. “Pax Silica will be a group of nations
RSS