Meta Q1 - Stock Pops 14%

Last week Meta Platforms posted very strong results, pushing the stock up 14% for the day. The company beat expectations for revenue and profits, and set guidance for the coming quarter higher than previously forecast. Its underlying operations, Facebook, Instagram and WhatsApp each performed well.

Over the last year and a half, the market worried that Meta was losing its way and becoming irrelevant. It was burning through billions trying to create the metaverse, while its core business was going backwards. That's all changed. User numbers are growing again, ad revenues are up and the metaverse focus is shifting to AI advertising tools.

Mark Zuckerberg declared 2023 as the 'year of efficiency', and expects spending to drop $10 billion from previous estimates due to changes in company structures and curtailing research.

Since the stock price's low in November, it's up 177%, but still needs to advance by another 58% to get back to all-time highs. We've gone through a full cycle from loved to hated to unsure to loved again. If you don't like the social media theme, now could be a good time to sell. Otherwise stay invested as Meta keeps making cash from people's obsession with scrolling through our social feeds on our web-connected devices.