Meta mojo is back as earnings surprise powers Big Tech rally

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Meta Platforms Inc shares rose about 28% on Thursday and helped spark a rally in the technology sector after the Facebook owner floored Wall Street by slashing its spending forecast and boosting its stock buyback plan by $40 billion.

"That is rare," analysts at Evercorse ISI said, referring to the positive developments. "And stocks react to rare."on Tuesday that had sent tech shares lower.

"There is also a less hawkish Fed , which is also boosting demand for growth and tech stocks generally."Meta now expects its 2023 expenses between $89 billion and $95 billion, a sharp drop from its previous outlook of $94 billion to $100 billion, with CEO Mark Zuckerberg calling the period a "Year of Efficiency".

"Promising that 2023 will be a year of efficiency was always likely to go down well with investors concerned about the largesse in spending directed towards the unproven potential of the metaverse," said Russ Mould, investment director at AJ Bell.

 

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None your feet america

Sometimes I think they overhire so they can do layoffs when the stock tanks

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