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The Meta (FB) share will rise after earnings in the first quarter

Expectations were already low for Meta’s recent quarterly results, which were a mixed return.

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Shares of Facebook parent company Meta rose Thursday after the company reported a better-than-expected profit in the first quarter.

Meta reported $ 2.72 earnings per share, higher than the $ 2.56 analysts had expected. However, revenue came in at $ 27.91 billion, lower than estimates.

Meta’s share rose 17.6% on Thursday. It has still fallen by about 40% since the start of 2022, along with a number of other technology stocks that plunged amid concerns over rising inflation, the Ukraine war and a return of Covid lockdowns in China.

Expectations were relatively low compared to Meta’s recent quarterly results, which were mixed.

It comes after the company shocked investors in February when it released a disappointing fourth-quarter report that showed daily active users fell for the first time on record.

Meta said Thursday that its daily active users rose slightly in the first quarter to $ 1.96 billion from $ 1.93 billion.

The company, which changed its group name from Facebook last year, is spending big bucks to make CEO Mark Zuckerberg’s vision of the “metaverset” – a hypothetical digital world incorporating work, leisure and commerce – a reality.

At the same time, the company is facing increasing competition from the Chinese short-form video platform TikTok.

Meta’s sales in the first quarter increased 7% from a year ago, which is the first time in its 10-year history as a public company, where revenue grew by single digits.

The company said it expects revenue in the $ 28 billion to $ 30 billion second-quarter range. If it hits the middle of this range, it will mark the first ever fall in quarterly revenue year-on-year.

– CNBC’s Lauren Feiner contributed to this report

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