The news: Meta’s stock rebounded and the company briefly enjoyed $500 billion in market capitalization, making Meta the best performer in the S&P Index since November.
Paving the way to recovery: Meta’s shares rose as much as 25% in trading Thursday after CEO Mark Zuckerberg vowed to make the social media company leaner.
Meta’s layoffs were costly: The company may have spent more than $88,000 per employee to cut 13% of its global workforce, per Insider.
But what about the metaverse? To the delight of Wall Street analysts, Meta’s year-old pivot into a VR metaverse platform provider was hardly mentioned during the earnings call. Instead, Meta’s messaging focused on potential growth businesses like advertising, content feeds, and Reels.
Our take: Meta will continue to play the shell game, focusing on growth segments and profits, while keeping metaverse developments and expenditures on the down low.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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