Shares of Meta Platforms (NASDAQ: META), or Meta, soared by more than 23% to almost US$189 after the release of its latest earnings on Thursday. While shares are nowhere near their all-time highs in September 2021, the stock price has more than doubled from its low of US$88 in November 2022. We have identified three reasons why.

1. Meta recorded a year on year increase in active users data

Facebook, one of Meta’s core products, recorded daily active users (DAUs) of two billion for December 2022, an increase of 4% year on year. The social network recorded monthly active users (MAUs) of 2.96 billion for the fourth quarter of 2022 (4Q’22), an increase of 2% year on year. The MAUs was also higher than in each of the first three quarters of 2022. Meanwhile, Meta’s Family of apps, which consists of Facebook, Instagram, Messenger and WhatsApp, recorded daily active people (DAP) of 2.96 billion for 4Q’22, an increase of 5% compared to a year ago....