Meta Platforms Soars with Impressive Q2 2023 Results and Expanding Metaverse

Meta Platforms Q2 23 – 26/07

having seen some chunky share price losses in 2022, this year has seen a face-ripping rally in the share price, with the shares up over 140% year to date. The rebound came in two parts with its Q1 numbers prompting further gains, after strong Q1 numbers and an upgrade to guidance for Q2. Q1 revenues came in at $28.1bn, a rise of 3% and easily beating expectations of $26.76bn, while profits came in at $2.20c a share, or $5.71bn, a fall of 24% but also above expectations.

Costs and expenses rose by 10% to $21.4bn. Q2 revenue guidance was adjusted higher to between $29.5bn to $32bn, while full year operating expenses are now expected to come in between $86-$90bn, a decline of $5bn, and a sum that includes $3bn to $5bn in restructuring costs. Profits for Q2 are expected to come in at $2.90c a share.

The Reality Labs segment or Metaverse continued to bleed cash, losing just shy of $4bn as revenues fell to $339m. The launch of "Threads" a competitor to Twitter has also seen lots of headlines and helped to drive the share price higher, adding millions of users, however, there has been little sign thus far that it has driven traffic away from Twitter in a sustainable fashion