Meta Platforms Inc. topped forecasts for second-quarter sales and gave a rosy outlook for the current period, signaling that the social networking giant is succeeding in migrating advertisers to its new Reels short-video feature.
Shares climbed 4.5% in late trading after the company said second-quarter revenue was $32 billion, compared with analysts’ average projections for $31.1 billion. In a statement Wednesday, Meta said sales in the current quarter will be $32 billion to $34.5 billion, also topping average estimates.
The company is betting on Reels — short-form videos that are similar to what users see on rival TikTok — to draw more attention to its social networks, Facebook and Instagram. The format has succeeded in increasing usage, and is now also helping draw advertisers, reigniting their spending after an industry-wide budget tightening in 2022.
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