Shares of Meta Platforms (NASDAQ: META) jumped 23.8% in January, according to data provided by S&P Global Market Intelligence. The social media company has been in the limelight since joining a slew of big tech companies in announcing widespread layoffs amounting to 13% of its workforce back in November.

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There were several reasons for investors to feel more optimistic last month. First, they believed Meta is working on a leaner cost base after shedding more than 11,000 employees in the previous quarter. CEO Mark Zuckerberg sounded contrite and acknowledged that the company had hired too aggressively and was now facing a combination of declining e-commerce demand, a potential economic slowdown, and stiffer competition. This admission gave investors confidence that management was aware of these challenges and taking concrete action to set things right.

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Source Fool.com