27 July 2023
If you are covering Meta’s latest financial results, please find below a comment from Ben Barringer, equity research analyst at Quilter Cheviot:
“Meta latest financial figures point to a company that has completed its turnaround and is now a better business than they were three years ago. The year of efficiency has paid dividends, and it is quite remarkable to see the change in fortunes come about so quickly. Meta has continued to be sensible on costs while investing in critical AI infrastructure allowing it to return to the top table of tech.
“This year has so far seen Meta solve a lot of their problems. Apple had stopped them being able to target people as efficiently, but the use of data and AI has allowed them to get back to doing so and improve their pricing as a result.
“They have also addressed the competitive imbalance it had with TikTok with Reels delivering strong numbers and good engagement, so people spending longer on Meta products. This has resulted Meta going from an advertiser that people were unsure about using to being critical to any marketing plans and spend.
“Its capabilities remain vast too. It has multiple ways it can embed AI into the offering, via the likes of WhatsApp and its advertising platform, while it also has new products that give it flexibility as the macro environment changes and hopefully improves. 2023 is proving to be an incredible successful year for Meta and we see no sign of it stopping anytime soon either.”
