On Wednesday, Meta Platforms Inc. was up big. Its shares shot up 10% following the company’s real-time second-quarter earnings report, which came in significantly above revenue projections. The surge followed the announcement of a strategic vision from CEO Mark Zuckerberg, who emphasized the company’s commitment to both business success and community engagement.
During a conference call, Zuckerberg stated, “We’ve had a strong quarter both in terms of our business and community.” His comments came on the heels of Meta’s revelation that it will miss third-quarter sales forecasts. The company forecast sales of $47.5 billion and $50.5 billion, well above Wall Street’s forecasts of $46.14 billion. This overall optimistic view is indicative of the company’s recent moves to improve their services and embrace their huge user community.
Beyond sharing those solid earnings, Zuckerberg shared a letter that took people deep into his vision for “personal superintelligence. As an example, he spoke about intentionally using advanced technology to foster “personal empowerment” instead of just using it to drive automation and efficiency. He did outline any specific products or apps that would represent this ambitious vision.
Meta also raised its outlook on total expenses for 2025, now predicting a range of $114 billion to $118 billion. That’s a modest improvement from the initial projection of $113 billion to $118 billion. This upgrade reflects the company’s positive steps toward controlling increased operating costs, while seeking opportunities for further growth.
Despite all that, the trajectory of the company’s user base is still on the rise, now up to 3.43 billion, an increase from 3.40 billion last quarter. Combined with positive financial indicators, this increase is another sign that Meta is effectively capturing attention from users on all its platforms.
As part of its ongoing strategy, Meta has undergone an AI overhaul aimed at regaining momentum after a lukewarm response from developers to its Llama 4 AI model. The CEO noted that compensation related to hiring will be “the second largest driver of growth” for the company moving forward.
Even with the positive sign of the third-quarter news, Meta gave no forecast for fourth-quarter revenues. It cautioned that growth could “be slower than the third quarter as we lap a period of stronger growth in the fourth quarter of 2024,” suggesting that challenges may lie ahead as the company navigates changing market conditions.