Thomas Lyons 
Meta Platforms, the parent company of Facebook and Instagram, has announced its second-quarter revenue forecast, exceeding market expectations. The digital advertising market has shifted towards tried and tested platforms, such as Facebook and Instagram, during economic uncertainties, leading to a 9% surge in Meta’s shares during extended trading.
The COVID-19 pandemic has caused a downturn in the economy, affecting the growth of rivals, such as Snap. However, Meta has benefited from the shift in marketing budgets to proven platforms, such as Facebook, helping it stay resilient in these challenging times. As a result, the company’s stock has risen by approximately 74% so far this year.
Meta has announced that it will lay off 10,000 staff this year, making it the first Big Tech company to announce a second round of layoffs after its first mass layoffs during the autumn, when it cut 11,000 jobs. Despite this, the company is optimistic about its current-quarter revenue, expecting it to be between $29.5bn and $32bn, which is higher than analysts’ estimates of $29.53bn, according to Refinitiv data.
However, the net profit for the first three months of the year fell to $5.71bn from $7.47bn, a year earlier. This decline in profit is likely due to the impact of the pandemic on the economy, which has caused many businesses to reduce their advertising budgets. Nevertheless, Meta’s strong performance in the digital advertising market has enabled it to weather the storm better than many of its rivals.
In conclusion, Meta Platforms’ second-quarter revenue forecast has exceeded market expectations, thanks to the shift in marketing budgets to proven platforms, such as Facebook and Instagram. Despite the economic uncertainties caused by the pandemic, Meta has remained resilient, and its stock has risen significantly this year. While the company has announced layoffs, it is optimistic about its current-quarter revenue, which is expected to be higher than analysts’ estimates.
