Meta released its quarterly revenue and it showed both good news and bad news.
👉 Background: Late last week, Meta’s CEO, the Zuck, presented Meta’s quarterly revenue. Investors were panicking because many of the other ad-reliant companies like Google and Snap had seen a major pullback in ad revenue.
👉 What happened: The bad news? Sales were down 4% from a year earlier(which wasn't too bad). The good news? Daily active users across its “family of apps” jumped 4% to 2 billion DAILY ACTIVE USERS.
👉 What else: But then the Zuck whet investor appetite by saying it plans to spend a lot less in 2023 after cutting 11,000 jobs in November last year. Tick, tick, tick from investors… and its share price has jumped over 20%.
💡 With the economy changing, business confidence dropping and ad revenue sliding, it's all about finding the right balance between taking risks and playing it safe.
💡Like many other tech companies, Meta’s goal has always been growth first, cash second. Case in point: the metaverse cost Meta over $14 billion USD last year alone.
💡 But building a successful company is like playing a game of chess - sometimes you need to take one step backwards before you can take two steps forward and to get to your end goal.
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