Shares of Facebook parent Meta Platforms (META) jumped after posting its first increase in sales in nearly a year. Here’s what investors need to know today.
1. Meta Sales Rise for First Time in Nearly a Year
Shares of Facebook parent Meta Platforms soared 12% in pre-market trading after the company posted its first sales rise in nearly a year as ad sales recovered. First quarter sales rose to $28.6 billion compared with analyst estimates of $27.7 billion. The company also said current quarter revenues will be as much as $32 billion compared with estimates of $29.5 billion. Meta continued to add users in the quarter for Facebook, Instagram, and WhatsApp. More than 3 billion people use at least one of Meta’s products each day.
2. Amazon Projected to Turn a Profit
Later today, investors will get results from Amazon. Amazon is expected to report a 7% rise in first quarter revenue, although its AWS cloud business growth is expected to slow. Despite slowing revenue growth, the company likely returned to profitability with net income just below $2.4 billion, compared with a $3.8 billion loss in the year-ago quarter.
3. Data Due on GDP, Jobless Claims
Later this morning, the Bureau of Economic Analysis releases its first estimate of first quarter GDP. The consensus estimate is for GDP to have grown at a rate of 1.8% following a 2.6% increase in the fourth quarter. The Labor Department is expected to report on initial claims for state unemployment benefits, which likely rose to 248,000 in the latest week from 245,000 in the previous week.
4. House Passes Bill to Raise the Debt Limit and Slash Spending
Republicans passed a debt ceiling bill proposing to raise the nation’s $31.4 trillion borrowing limit in exchange for deep cuts in government spending. The bill is aimed at jump-starting talks with President Biden ahead of a deadline for the federal government to avoid default, but President Biden has vowed to veto the bill.
5. Barclays Profits Jump 27% in the First Quarter
Barclays profits rose 27% in the first quarter, driven by sharp growth in its U.S. consumer credit card business. Barclays also saw quick growth in transactions at its corporate banking unit which offset a drop in investment banking revenue.