Meta's Revenge: 170% Share Increase Driven by Efficiency and Advertising Boost

Meta—previously known as Facebook—has recovered significantly after a difficult 2022, with shares rising by more than 170% so far this year. The company’s move to efficiency, which involved over 20,000 employee layoffs and deprioritizing several AI initiatives, is partly responsible for this reversal. Cash flow has significantly increased as a result, rising from a low of $173 million in the previous quarter to $13.64 billion in the most recent one.

This year, the advertising market's recovery has also helped Meta. The company's ad views rose by 31% in the third quarter over the prior year, despite a 6% decrease in the average price per ad. The company's recent prosperity has also been aided by the profitable rollout of Instagram's reels feature and the successful debut of Threads, a feature meant to rival Elon Musk's X.

But it's still unclear if Meta will be able to sustain its Wall Street performance if its austerity measures are lifted. A few people are worried about rising costs after CEO Mark Zuckerberg revealed intentions to boost expenditure next year, especially in AI. Furthermore, fourth-quarter sales may be impacted by the ongoing conflict in Israel and Gaza. Even although the price fell 1.2% recently, several analysts are still positive about Meta's prospects; Bank of America rates the company as a "buy."

A federal jury's decision that Google's app store is an illegal monopoly represents a major win for those who have been critical of the internet giant's app store policies, according to other news. The verdict comes after a keenly contested trial between Fortnite creator Epic Games and search engine giant Google. Google said it will appeal the decision.

Lastly, a Wall Street Journal report suggesting that Brigade Capital Management and Arkhouse Management may acquire the venerable store Macy's caused shares of the company to jump by over 17%. A 32% premium over the stock's Friday closing price would be provided by the proposed transaction. How Macy's feels about the proposition is still

unknown.