Near the close of the session, shares of Facebook were up 24.8% at $191, their highest level since May of last year. From yesterday to today, with the rise in the share price, the market capitalization of Facebook’s parent company went from 401,511 to 508,157 million dollars.
“It certainly looks like the markets are bullish because Meta’s earnings were surprisingly positive,” said Sam Stovall of CFRA Research in New York. “Investors are also encouraged by the fact that the Fed is somewhat teasing that it is finished or close to ending its interest rate tightening program.”
In addition to this, in its most recent financial report, Meta Platforms predicted that for the first quarter of 2023 it will have revenues above Wall Street estimates, indicating a rebound in demand for digital ads after months of weak sales.
The Instagram and Facebook parent forecast revenue of between $26.0 billion and $28.5 billion, compared with median analyst estimates of $27.14 billion, according to IBES data from Refinitiv.