2023-05-01 09:45:00 ET
Kudos to Facebook parent Meta Platforms (NASDAQ: META) for topping last quarter's earnings estimates. But it's a dubious win. Profits themselves are still dwindling because the company is spending a fortune on promoting and improving its advertising platform. It's not clear when -- or even if -- Meta will be able to rein in its burgeoning expenses.
The bulls are taking a victory lap anyway, sending shares higher to the tune of 14% on Thursday following Wednesday's post-close release of the company's first-quarter numbers. In fact, Meta shares reached a new 52-week high this week.
Investors may want to use this recent strength as an exit opportunity, though, and consider whether or not this company can maintain its feebly rekindled sales growth without spending more and more to drive it.
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Meta May Have Dazzled in Earnings, but It Still Isn't Getting Much Bang for Its Buck