The meta bounces back from the bottom - advertising is a key revenue driver

After three quarters of negative revenue growth, Meta is rebounding with revenue growth of 2,6%. for the quarter, reaching the level of USD 28,6 billion. With stocks already up over 70%. since the beginning of the year, there was no margin for error with the report, and Meta delivered it. The company shows clear cost discipline, and looking at its good-looking core business, investors who bought these shares in late 2022 will rejoice.

CHECK: How to buy Facebook shares? [Guide]

Ad revenue saves the day

The rebound in ad revenue may indicate that the slowdown in corporate budgets is starting to improve - Alphabet also beat the estimated results yesterday. Meta's advertising revenue totaled $28,1 billion, up 4,1% YoY. year on year and is a much better result than the expected USD 26,7 billion.

Mark Zuckerberg named this year "Year of Efficiency" for Meta, along with spending cuts and staff cuts. However, his Metaverse push Reality Labs, lost another $3,99 billion for the quarter, which was worse than expected, and unfortunately, it looks like those losses will continue to increase in the near term.

The key information for investors was a strong forecast for the future, showing that this result was not a one-off and that 2023 promises to be much better for Meta. The social media giant expects revenues in the range of USD 29,5 billion - USD 32 billion.

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JoshGilbert - market analyst in eToro. He has over 6 years of experience in various positions in financial services. A documented history of work in the financial services industry, consistent achievement of above-average commercial goals led to rapid promotion and internal recognition. He specializes in financial writing, media, risk management, sales, financial markets, CFDs, Forex and stocks