Meta surged sharply premarket. What you need to know about its earnings report.

An earnings report could be used as a company's barometer, health assessment, and more importantly, a reference for future prospects and development paths.

Why are investors applauding Zach's New Year's resolutions by pushing the stock higher after the earnings report?

Among other reasons, there are several messages that should grab your attention.

Meta's fourth-quarter sales fell 4% to $32.2 billion, its third straight quarter of decline. Even so, total revenue beat analysts' expectations, with Meta expecting first-quarter revenue of $26 billion to $28.5 billion, in line with the average forecast of $27.3 billion. What's more, revenue was up nearly 15% from the previous quarter.

Efforts include, but are not limited to, reducing administrative and capital expenditures.

The company increased its share repurchase authorization by $40 billion.

Analysts predict that Meta will return to growth after the current period.

“Advertising demand hasn’t really improved, but it hasn’t gotten significantly worse either,” Snap CEO Evan Spiegel said on a conference call.

According to the earnings report, though the average price per ad is declining, the user base and ad impressions are growing, which lays the foundation for the future monetization level to increase under the circumstance that the macro environment drives the growth of digital advertising demand.

Though the Fed slowed the pace of interest hikes and implied that “disinflation process has started,”the tightening policy still need time to travel through the economy, which means that the rebound of ad industry will also take more time. But the company shared in the earnings call that spending is rising in sectors such as health and travel.