Meta: Why Zuckerberg Owes China a Thank You –
A "thank you" is owed by After to Chinese retailers that contributed the most to the company's first-quarter sales growth after three straight quarters of declining revenue.
Meta: The new round of layoffs has begun
According to the finance director Susan Li, who announced the financial resultsThe platform social network saw an acceleration among advertisers in China, which the company attributed in part to lower shipping costs and an easing of the lockdown for advertisers.
In short, Chinese companies allocated significant budgets in the January-March quarter in a three-month period ending at the end of March to advertising in Facebook aimed at consumers living outside of China. It's a sign that China's recent relaxation of its zero-Covid policy has indirectly benefited Meta, with Chinese companies using the massive reach of Facebook and Instagram around the world to attract new customers.
However, Meta's sales rose only 3% year over year to $28,65 billion in the first quarter, indicating that there is still turmoil in the digital advertising market.
The difficult regulatory environment
Meta expects "a volatile macroeconomic environment" for the remainder of 2023 and a "difficult regulatory environment" overall, the finance director noted, referring to European Union regulators who continue to impose strict data privacy laws and requirements affecting the company.
However, just the fact that Meta was able to overthrow her drop of its sales after a lean period proved enough to send the company's stock up as much as 12%.
In addition, investors welcomed Mark Zuckerberg's earlier announcements of a "year of efficiency" that would go through and layoffs of about 21.000 workers by early summer.