Meta Platforms Shares Surge 12% in 2023 After First Sales Growth in Nearly a Year

Market Highlights for April 27, 2023

Meta Platforms, the parent company of Facebook, experienced a significant 12% increase in pre-market shares following its first sales growth in almost a year. Here’s a detailed breakdown for investors today.

1. Meta Platforms Posts First Sales Increase in Nearly 12 Months

Meta Platforms (META) saw its shares jump 12% before market open after reporting a rebound in advertising revenue. The company’s first-quarter sales reached $28.6 billion, surpassing analyst expectations of $27.7 billion. Furthermore, Meta projects second-quarter revenues up to $32 billion, exceeding the estimated $29.5 billion. Daily active users across Facebook, Instagram, and WhatsApp continue to grow, with over 3 billion people engaging with at least one Meta product each day.

2. Amazon Expected to Return to Profitability in Q1 2023

Amazon’s upcoming earnings report is anticipated to show a 7% increase in first-quarter revenue, despite a slowdown in its AWS cloud segment growth. The company is expected to return to profitability with net income approaching $2.4 billion, a significant turnaround from a $3.8 billion loss during the same period last year.

3. Key Economic Data: First Quarter GDP and Jobless Claims

The Bureau of Economic Analysis is set to release its initial estimate of first-quarter GDP growth, with economists forecasting a 1.8% increase following a 2.6% rise in the previous quarter. Additionally, the Labor Department will report on initial unemployment claims, expected to have risen slightly to 248,000 from 245,000 the prior week.

4. U.S. House Approves Debt Ceiling Increase with Spending Cuts Proposal

The House of Representatives passed legislation to raise the federal debt limit, currently at $31.4 trillion, coupled with substantial government spending reductions. This bill aims to initiate negotiations with President Biden ahead of the federal government’s default deadline. However, President Biden has pledged to veto the measure.

5. Barclays Reports 27% Profit Increase in Q1 2023

Barclays announced a 27% rise in first-quarter profits, fueled by strong growth in its U.S. consumer credit card division. The increase in corporate banking transactions also helped offset declines in investment banking revenue.

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