Meta shares pop 7% as Wall Street rallies around layoffs

Shares of Meta
jumped more than 7% Wednesday after the company announced it will lay off more than 11,000 employees.

Analysts at UBS
were encouraged by Meta’s announcement Wednesday and said they believe the layoffs are a clear sign that the company “gets it.” The analysts reiterated their buy rating on Meta shares and said they liked Zuckerberg’s comment about becoming “more capital efficient” in his employee memo.

“We think Meta cost reductions – across opex and capex - signals that the company hears investors, and we think the shares can move higher,” they wrote in a Wednesday note.