Recently, boss Mark Zuckerberg had to reassure investors because the advertising business was not going well. Now the company is reporting good news.
The advertising business of the Facebook group Meta is running at full speed again. Sales in the last quarter rose by 23 percent year-on-year to 34.1 billion dollars (32.3 billion euros), as Meta announced after the US stock market closed on Wednesday. The bottom line is that profits jumped from $4.4 billion a year ago to $11.6 billion.
At the same time, the group continues to spend a lot of money on the development of virtual worlds and the devices for them. Reality Labs’ operating loss rose to $3.74 billion from $3.67 billion a year earlier. At the same time, the division’s sales fell from $285 to $210 million.
Investors had repeatedly expressed concern that Meta was spending too much money on a technology with uncertain profit prospects. The doubts grew stronger in the last quarter as the online advertising business slowed overall. Founder and boss Mark Zuckerberg had already confirmed back then that he saw the future in the metaverse and would therefore keep investments high.
The Meta share temporarily rose by a good two percent in after-hours trading. Sales exceeded analysts’ expectations.