Meta (ex Facebook) sales increase by a quarter to $40.1 billion - profit jumps to $14 billion

Meta (ex Facebook) sales increase by a quarter to $40.1 billion - profit jumps to $14 billion

According to a report by www.finanzen.net,

The advertising business of Meta, Facebook's parent company, continues to boom. In the last quarter, sales rose by a quarter year-on-year to $40.1 billion, while profits even rose to $14 billion from $4.65 billion a year ago. At the same time, Meta plans to pay a quarterly dividend for the first time and has set it at 50 US cents. Despite this strong business development, Meta continues to invest heavily in the development of virtual worlds and related devices. The operating loss in this area rose to $4.65 billion.

Analyzing these numbers from an economic perspective, it is expected that the announcement of the quarterly dividend will increase investor confidence. This is already evident from the fact that Meta shares rose by 20.32 percent to $474.99 after this announcement. The fact that JPMorgan raised the price target for Meta to $535 and left the rating at “Overweight” also indicates a positive development for the company. According to analysts, the prospect of accelerated sales growth and the quarterly dividend underline Meta's strong development.

Meta's investments in artificial intelligence and virtual worlds may be subject to uncertainty in the short term, but these are viewed as important initiatives in the long term. The strong user base of the various meta-services such as Facebook, Instagram and WhatsApp provides a solid platform for the introduction of new services such as Threads. Threads, as an alternative to Elon Musk's Twitter successor X, is quickly gaining users and is seen as a strong competitor.

Overall, Meta seems to be on the right track, with investments in new technologies potentially driving further growth in the long term. The announcement of the quarterly dividend and the increased price target by JPMorgan show confidence in Meta's future.