- Meta's surged more than 9% in premarket trading on Thursday, a day after the company posted stronger-than-expected results for the second quarter and gave guidance for the current period that topped analysts’ estimates. The company on Wednesday reported earnings per share of $2.98, which was higher than the $2.91 per share expected by a survey of Refinitiv analysts.
- The results are attributed to a resurgence in online advertising and the success of Meta CEO Mark Zuckerberg's strategy to focus on cutting costs and enhancing profitability, known as the "year of efficiency."
Why it matters
Meta's strong financial performance indicates a positive outlook for the company, driven by a rebound in the online advertising market and the effectiveness of their cost-cutting measures. The company's ability to exceed analysts' expectations for both earnings showcases their capacity to adapt and thrive in a competitive digital landscape.