Meta Platform (META) delivered strong results in the third quarter. The technology giant reported adjusted earnings per share of $6.03, beating Wall Street expectations of $5.25, and revenue of $40.59 billion, beating estimates of $40.25 billion.
Despite the strong quarterly results, the stock price fell after the earnings. Aaron Kessler, Senior Analyst at Seaport Research Partners, joined Market Domination Overtime to discuss this diversifying market response.
Market expectations for Meta were “relatively high” in the lead-up to the earnings release, Kessler said. Although the company beat public expectations, he said, given the company’s stock’s strong performance before the announcement, “I wouldn’t be surprised if the stock price goes down a little.”
Working on Meta’s AI strategy, Kessler has identified two key approaches: internal applications to automate advertising systems and operations, and a long-term effort to develop generative AI products and services.
But he characterized the company’s generative AI efforts as still in the “very early stages.”
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This post was written by Angel Smith
