Meta Platforms is expected to report its second-quarter earnings results after the closing bell on July 27, when investors will watch for progress on CEO Mark Zuckerberg’s “Year of Efficiency."
The social media titan is expected to post revenue of $31.12 billion, compared to $28.82 billion a year earlier, and earnings of $2.91 per share, compared to $2.47.
The question for investors is whether Meta’s significant 25% staff layoff in recent months and shelved data center construction projects will lead to revenue growth.
One potentially bullish sign is Threads, Meta’s answer to Twitter, which added 100 million users in its first week. Maintaining, and ultimately monetizing them, is another matter, however.
Relatedly, analysts expect Meta’s net income from click-to-messaging ads to rise thanks to user growth on Instagram.
Meta’s Reality Labs will likely continue to be a drag on revenue, given that the company previously said it expects the division’s operating losses to increase in 2023 from a $13.7 billion loss in 2022.
Zooming out, Meta has been one of the strongest stocks thus far this year, gaining roughly 140% in 2023. Investors will see next week if that momentum can continue.
Shares of Meta traded 0.4% lower Monday afternoon at $293.08.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel