Despite a lot of people claiming that there’s a massive lack of interest from the public when it comes to social media in general, it seems that things are looking pretty good for Meta (ex-Facebook). The company has surpassed expectations with its second-quarter sales and provided an optimistic outlook for the current period. The situation indicates the successful migration of advertisers to the Reels short-video feature.
According to Bloomberg, Meta reported $32 billion in revenue for Q2, exceeding analysts’ average projections of $31.1 billion. Moreover, the tech giant anticipates sales in the current quarter to be somewhere between $32 billion and $34.5 billion, once again surpassing average estimates.
The impressive performance has significantly impacted Meta’s stock, leading to an increase of 8% during pre-market trading in New York on Thursday, with shares closing at $298.57. The company’s strategic focus on Reels has proven fruitful for boosting user engagement and enticing advertisers. This can be considered a surprise, considering that plenty of voices accuse Meta of having copied TikTok’s short-form videos by implementing the Reels feature.
Mark Zuckerberg, the CEO of Meta, stated:
We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall.
Under the leadership of Mark Zuckerberg, Meta has implemented a “year of efficiency,” involving workforce and team reductions. Investors have embraced this approach, resulting in the stock price of the company doubling over the course of the year. Additionally, Meta has heavily invested in artificial intelligence to offer personalized content and advertising recommendations based on user’s interests.
