Meta’s shares are up 74% since it announced plans to lay off more than 21,000 employees. In the early hours of this Thursday, they grew again by 11.6% in operations after the closing of the parquets, driven by the publication of the company’s results in the first quarter of 2023. The parent company of Facebook, Instagram and WhatsApp has entered 28,645 million dollars, 3% more than in the same period of the previous year.
The Meta data center in Talavera will affect an area of importance for the imperial eagle and the black vulture
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The markets have decided to reward Mark Zuckerberg’s long-term plans in this way, despite the fact that the cost of the restructuring plan has had a direct impact on the company’s profits. These remain at 5,709 million dollars from January to March (5,172 million euros), 24% less year-on-year.
In the conference after the presentation of the accounts, Zuckerberg has stressed that it is false that he is trying to quietly abandon his plans for the development of the metaverse to focus on artificial intelligence, the technology in vogue in the sector. “A narrative has developed that we are moving away from our vision of the metaverse, and I want to say directly that that is not true,” he said. The division called Reality Labs of Meta, in charge of this development, continues to post operating losses, which increased this quarter to around 4,000 million, 35% more than in the same period in 2022.
“We have been focused on both AI and the metaverse for years and we will continue to do so,” the Facebook founder has defended, considering that the two areas “are related” and are two “big technological waves” that mark a “road map” from the present to the future for the company. In addition, he has defended that his content recommendation systems have been using AI for years. “More than 20% of the content on your Facebook and Instagram is recommended by AI from groups of people or accounts you don’t follow. Across all of Instagram, that’s 40% of the content you see,” he revealed.
Meta has advanced some good forecasts for the second quarter, with revenues higher than those of the period reported in the early hours of this Thursday. However, he anticipates net earnings will continue to be penalized by large expenses for the year, including $3-5 billion in restructuring costs. He also estimated that its capital expenditures, which include investments in artificial intelligence to “strengthen advertising” and some of its app services, will be between $30 billion and $33 billion.
