Meta Platforms, a social media giant, is on its way to have the highest opening in eight months. This is due to the company’s recent reporting of a rebound in profits and a promise of a big step up in shareholder returns. The company’s CEO, Zuckerberg, has signaled a sharper focus on profitability, which has been a major concern for the company and its shareholders.

Promising News for Meta Shareholders

The Meta has promised to buy back another $40 billion of stock and cut its forecast for operating costs by around 7%. This news came as a welcome relief for shareholders who had seen the company’s value drop nearly three-quarters of its value from its pandemic-era peak. The company has faced a lot of challenges, including competition, regulation, economic slowdown, and a series of governance revelations.

Meta Platforms (NASDAQ: META) Stock on the Rise

Improved Advertising Business

The Meta has reported that its core advertising business is improving as it deploys more AI tools to target ads more efficiently. However, the advertising market remains challenging due to the weak macroeconomic environment. The company’s revenue has been under pressure for a year, and its net income has dropped 55% to $4.65 billion. The company’s earnings per share have also dropped to $1.76. Despite this, the company’s forecast for first-quarter revenue is in line with market expectations, with a range of $26 billion to $28.5 billion.

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Rise in User Base

The company’s revenue has increased, reflecting its ability to add to its user base. The company’s daily active user growth has inched up 4% to 2 billion, which Zuckerberg attributes to progress made in driving engagement with its Reels feature. This feature is Facebook’s answer to TikTok’s short-form videos.

Focus on Efficiency

The company has taken action on costs, which has grabbed the attention of analysts. Meta has announced that its 2023 expenses will be in a range of around $92 billion, which is a cut of some 7% from earlier estimates. The company also said it will prune capital spending by a similar amount. The company has also announced a cut in headcount by over 10% last month.

“The Year of Efficiency”

According to well Known analysts, Zuckerberg is still the “build the next big thing” growth CEO. However, the announcement of 2023 as the “Year of Efficiency” shows the company’s recognition of the reality it finds itself in and its understanding of its investors’ concerns. The company’s focus on efficiency will likely benefit its shareholders and help it achieve its goals.

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