Meta shares jumped in after-hours trading after the company handily beat revenue estimates. Cheddar News breaks it down.

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Meta Jumps On Revenue Beat

And we do have an earnings alert this time from meta, the stock popping a lot in the after hours. So let's get straight to check. The news is Michele Castelli a with more Michelle Yeah, shares are up there soaring at one point they were near 18% in after hours trading, the company reported a dollar 76 in earnings per share on a diluted basis. Now that's not comparable to the original original estimate of $2.22. But while we're seeing the shares pop at this Time for a few key metrics. First, there was a huge beat on revenue at this time, $32.17 billion. The estimate from the street was only 31.53 billion. We're also seeing that the company is investing in a buyback program at this time, about $40 billion 27.93 billion. So this is going to be big news for those investors. In addition to all this, we're seeing that the average revenue per user for facebook is actually ahead of what the street was expecting coming in at $10.86 versus the street account estimate of $10.63. Medicine. Overall while there are more ads that are being served across the board on facebook, I think it's up more than 20%. They did see a decline in the price of those ads. Still though they are turning out more money per user than people are expecting. So even though there was an advertising, even though they are seeing slight bit of slow down, it's not really affecting their overall bottom line. They're still being able to monetize the number of people who are using the company, about two billion people per day according to the latest numbers. You know, Michelle. It's interesting here, I see comments from the ceo Mark Zuckerberg in a statement saying that the community continues to grow. He's pleased with a strong engagement across apps, but that the progress that it's making on its AI discovery engine and reels are major drivers of the growth. What do we know about that AI Discovery Engine and reels and how they're benefiting the company? Well, you know, reels is definitely one of the things that we should keep an eye on. It is their biggest Tiktok competitor. And we know that advertisers are really interested excuse me, in this medium at this time. So I see as you take a sip there, like the stock again, obviously, I see even at one point of 17% but still, I think obviously double digits after hours go ahead. And definitely so reels is definitely something that they have been investing in. It's their biggest Tiktok competitor. In fact, if you look overall, um, this is something that advertisers are interested. The short form video entertainment content. And I'm hearing from my sources that actually there might be a recent boost in reels because of all the uncertainty over whether or not Tiktok I will stay legal in the US, all the states banning it, especially in states like texas where it's not even allowed on many college campuses, on public wifi. So there is some advertiser interest in moving that money towards real. And I think that's where meta is going to see a little boost. At this time. It isn't as monetize, double as the other products. Facebook still makes them a lot of money, but it is something that is growing and definitely a positive note for them. All right. Michele Castelli. Oh, with that great breakdown, Michelle, thank you.