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01/08/24
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Meta Stock Soars 9% After Upbeat Guidance as Second-Quarter Results Exceed Estimates
On Wednesday, Meta Platforms reported Q2 results that beat analyst estimates on the bottom and top lines and issued better-than-anticipated guidance for this quarter.
At the New York open, Meta Platforms was up about 7%.
For the 3 months that ended on June 30, the company reported revenue of $39.07B and earnings of $5.16 per share, higher than estimates of $38.26B and $4.7, respectively.
Daily active people were as 3.27B, 7% higher in the second quarter from the same period the prior year.
Capital expenditure was $8.47B in the second quarter, higher than $6.72B in the first quarter.
The company guided total revenue in the third quarter to be between $38.5B and $41B, or $39.75B at the midpoint, higher than Wall Street expectations of $39.09B.
The optimistic outlook on revenue came as Meta increased the lower range of its annual capital spending outlook to between $37B and $40B from between $35B and $40B previously, although the total expense guidance for the full year stayed the same at a range of between $96B and $99B.
The company however said that it expected infrastructure costs next year would be a major driver of expense growth as it recognized operating costs and depreciation associated with its expanded infrastructure footprint.
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