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    Facebook parent Meta posts solid Q1 results, stock soars

    By SHOOTUpdated:No Comments1665 Views
    Facebook's Meta logo sign is seen at the company headquarters in Menlo Park, Calif., Oct. 28, 2021. Meta reports earnings on Wednesday, April 26, 2023. (AP Photo/Tony Avelar, File)

    By Barbara Ortutay

    --

    Facebook parent company Meta's first-quarter results surpassed Wall Street's modest expectations on both profit and revenue, sending its stock soaring in after-hours trading.

    Meta also reported that the monthly user base of its flagship platform — Facebook — inched close to 3 billion.

    Meta Platforms Inc. said Wednesday it earned $5.71 billion, or $2.20 per share, in the January-March period. That's down 19% from $7.47 billion, or $2.72 per share, a year earlier.

    Revenue climbed 3% to $28.65 billion from $27.91 billion.

    Analysts, on average, were expecting earnings of $2.02 per share on revenue of $27.67 billion, according to a poll by FactSet.

    Meta said it has "substantially completed" layoffs it first announced in 2022. It announced a second round of layoffs in March.

    "Our AI work is driving good results across our apps and business," CEO Mark Zuckerberg said in a statement. "We're also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision."

    For the current quarter, Meta said it expects revenue in the range of $29.5 billion to $32 billion, above analysts' expectations of $29.45 billion.

    Shares of the Menlo Park, California-based company rose more than 12% to $235.60 in after-hours trading.

    Barbara Ortutay is an AP technology writer

    Tags:artificial intelligenceFacebookMeta



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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