Why Meta Platforms Stock Popped This Week
Shares of Meta Platforms (NASDAQ: META) popped as much as 25.3% this week, according to data from S&P Global Market Intelligence. The social media giant and metaverse company announced major layoffs that investors took as a positive sign for profit margins over the next few years.
On top of this, technology and internet stocks rose broadly this week after inflation came in weak in October. As of 12:42 p.m. ET on Friday, Nov. 11, shares of Meta Platforms are up 23.3% this week.
On Wednesday of this week, Meta founder and CEO Mark Zuckerberg notified 11,000 employees -- over 10% of its staff -- that they are getting laid off. Zuckerberg blamed himself for overhiring and extrapolating one-time gains for digital advertising and e-commerce during the pandemic that were not sustained during 2022. Because of this, the company needs to downsize its employee count in order to maintain profitability and give it the flexibility to work on its metaverse and virtual reality ambitions.
Source Fool.com
