owner of facebook Meta platforms (PURPOSE) fourth-quarter results that topped revenues as the company endured its toughest period since its founding 19 years ago. Target shares rose after the company announced a $40 billion share buyback.
Also, Meta provided revenue guidance that beat estimates. For the first quarter, the company expects revenue of $26 billion to $28.5 billion. The midpoint of $27.4 billion was above estimates of $27.1 billion.
The company reported adjusted earnings of $1.76 per share on revenue of $32.16 billion. Analysts had expected revenue of $31.55 billion, according to FactSet.
Target shares rose 17.9% to 180.85. stock market today.
A Difficult Year for Purpose
The earnings report comes amid a tough year for Meta, which announced its plans in November 11,000 jobs were cut. The layoffs cover 13% of Meta’s workforce. Target also said Wednesday it announced a $40 billion increase in stock authorization.
Including like other social media companies Snap (SNAP), etsy (ETSY) and pinterest (PINS), Target is facing not only macroeconomic weakness but also a painful decline in digital advertising, which accounts for nearly all of its revenue.
Another proof of these problems became clear fourth quarter earnings Snapchat’s owner Snap’s report was hit after disappointing results. Snap shares fell about 10.3% to close at 10:37 a.m. Wednesday.
Privacy Amendments Fight Meta Fund
But the company has made technology improvements with its advertising strategy approach. In a note to clients, Credit Suisse analyst Stephen Ju said he expected to see “gradual improvements in dollar growth of Meta’s revenues” as a result.
Meta also plans to spend billions to develop the so-called metaverse.
There is a meta fund Relative power rating of 72 from 100.
Please follow Brian Deagon on Twitter @IBD_BDeagon for more information on tech stocks, analysis and financial markets.
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