Here’s Why Meta Stock Is Surging 18% Despite Underwhelming Quarterly ResultsMeta was up 18% on Thursday to around $206 per share, as investors cheered the company’s
increase in daily active users in the first quarter, from 1.93 billion to 1.96 billion.
User growth, which declined for the first time in the company’s history during the fourth quarter of 2021, bounced back and topped analyst expectations in the first quarter.
Despite solid user growth, Meta reported
lackluster revenue ($27.9 billion versus $28.2 billion expected), with sales growing just 7% from a year ago—its first time as a public company that revenue only grew in single digits.
Total costs and expenses of $19.4 billion, meanwhile, surged 31% from last year in a dramatic increase — but the company forecasts lower expenses for the full year, reducing its spending estimate by roughly $3 billion.
Before the stock’s rally on Thursday,
Meta shares were down nearly 50% so far in 2022.
