Meta Earnings, The Holes in Tech’s “Flattening” Job Cuts Theory (Daily Update)
Hello everyone. We wrap up the week with Meta’s 1Q23 earnings. Neil goes over the positives and negatives from the report. Meta continues to experience quite the rebound in expectations. With job cuts and expense reductions at the top of Meta’s considerations, Neil’s attention turned back to a recent article from the Financial Times trying to explain the significant number of job cuts in tech land. Neil has a few issues with the FT’s theory.
Let's jump right in.
Meta Earnings
This past Tuesday, Meta reported 1Q23 earnings.
Here is an earnings recap table highlighting some of Meta's key financial numbers:
(click / tap table to enlarge)
Note: Results reflect $1.1B of restructuring charges.
Key data points from the quarter included:
More than 3 billion people use at least one Meta property (app) daily.
Facebook has 200 million daily actives in the U.S. and Canada / 2 billion daily actives worldwide.
Reels (Meta's TikTok competitor) resharing hit 2B times every day, doubling over the last six months.
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Ranking Big Tech’s 3Q22 Performance, Zuckerberg Announces Major Round of Layoffs, Disney 4Q22 Earnings (Daily Update)
In today’s update, we go over Neil’s rankings for how Big Tech performed in 3Q22. We discuss Apple, Alphabet, Amazon, Microsoft, and Meta. The discussion then turns to Zuckerberg’s drastic move to reduce Meta’s workforce by 13%. We conclude with a closer look at Disney’s earnings. Disney management is making one strategic mistake with Disney+.
Hello everyone. Let's jump right into today's update.
Ranking Big Tech’s 3Q22 Performance
CY3Q22 was a mixed bag for Big Tech (Apple, Microsoft, Amazon, Alphabet, Meta). Macro issues are not being felt evenly. At the same time, competition is impacting some companies more than others. It’s telling that maybe the biggest surprise to come out of 3Q22 earnings season came in November, after everyone reported,
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