Meta Delivers The Greatest Comeback Story of 2023:


At its bottom last year, $META was down as much as 76%. After rising over 250% since the end of last year — the stock is now just 16% below its all-time highs.

Yesterday, Meta continued its massive ascend after reporting earnings that showed sales rising, costs under control and future growth on an upward trajectory.

Highlights from Meta’s earnings call:

  1. Reels product is delivering on sales growth. The product’s annualized sales has reached $10B — triple that of last year’s third-quarter $3B and rivaling TikTok’s estimated $10B in sales last year.

  2. AI is delivering big results for Meta. Some AI helps users save time, and other AI helps users waste time. Thanks to Meta’s AI improvements — which are powering ad and content recommendations — time spent on its platforms increased by 7%.

  3. Threads is still a pet project. And Meta won’t monetize it until it reaches “hundreds of millions of people.” But there’s a long way to go. Between July 7-22, daily active users on Threads fell from 49M to 12M.

Long-term: Zuck says Meta will ride “two technological waves” — AI and the metaverse (longer term).


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