Mark Zuckerberg sees a revival in the works for Meta Platforms (META), the parent company of Facebook.
Over the last few years, the company experienced significant headwinds that slashed billions from the company’s valuation. Apple’s (AAPL) change to its privacy measures in the spring of 2021, was perhaps the biggest contributor. With ad-targeting abilities impaired, the share price of Meta plummeted over 50%.
The company also weathered tough competition from TikTok against its short-form video platform, Instagram Reels, as well as tepid reception to its rebrand and plans to build a so-called metaverse.
A Rebound Unfolding
Meta missed on profit in the fourth quarter, posting $4.7 billion, as opposed to the $6 billion expected. Despite this, both Zuckerberg and investors remain optimistic.
The CEO claims the social media giant has found its feet after some protracted stumbling. Meta lowered its estimate of future expenses, buoyed by the 11,000 jobs the company cut in November. What’s more, it announced a new slew of AI-powered tools designed to reclaim advertising revenue lost as a result of the change in Apple privacy rules. These tools have reportedly already helped to broaden the user base of Reels.
Investors cheered the optimistic outlook. Shares popped by up to 20% following the report. Meta also announced plans to buy back $40 billion in shares.
Meta has an enormous user base and now it’s growing again, after posting a loss in users last February for the first time in company history. In the most recent quarter, Facebook saw 2 billion active users. But where many investors see opportunity, some employees see concerns.
Some knowledge workers may view Meta’s revival with trepidation considering the cost-cutting and efficiency improvements were supported by layoffs and heavy investment in AI.
In the meantime, if you’re one of the users who flocked away from Meta’s platforms, now might be the time to migrate back.
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