Most of us were wrong about Facebook. As much as people love to hate it, it turns out that the social media platform isn’t dead. In fact, user growth has been rising.
On Wednesday, Meta reported surprising earnings that caused its stock price to jump 20% in after-hours trading.
Daily Active Users (DAU) came in at 1.96 billion vs 1.95 billion expected, according to reports. “More people use our services today than ever before, and I’m proud of how our products are serving people around the world,” said Meta boss Mark Zuckerberg.
Monthly Active Users came in at 2.94 billion, which was slightly short of the 2.97 billion expected but average revenue per user hit US$9.54 – higher than the US$9.50 expected. Meta’s ability to milk revenue from its increasing DAUs was enough to cause its stock price to resurface beyond the US$200 mark after hours.
The data is encouraging as Meta continues to prep for the full rollout of its metaverse projects: Facebook Horizons, Horizon Workrooms and Horizon World.
Many were skeptical about Zuckerberg conquering Web 3.0, airing concerns about Facebook’s declining relevance and its aggressive 47.5% cut on virtual asset sales in its metaverse.
Although Meta’s latest earning’s do not fully disprove a dwindling appetite for Zuckerberg products, shareholders will consider the news as reassuring as the Silicon Valley billionaire makes headway into Web 3.0. After all, Meta’s easily beat Wall Street estimates of $2.56 per share with $2.72 reported.