Meta’s shares plunged by 23% after the 4th quarter report’s publication

The analysts were left disappointed by the company’s financial results

03.02.2022 - 13:25

277

1 min

What’s new? Shares of Facebook’s parent company Meta collapsed 23% in the evening session following the release of its financial report. The analysts were left disappointed by the social media giant’s fourth-quarter results, as well as its predictions for the first quarter.

Link to Meta’s reporting

What does Meta’s fourth-quarter reporting say? Despite a 20% increase in revenue from $28 billion to $33,67 billion, the corporation’s net income was down 8% from the same period in 2020 (from $11,22 billion to $10,28 billion).

In addition, the number of daily active Facebook users fell by 1 million people from the previous quarter, the first time in the social network’s history.

What does Meta expect in the first quarter? The company expects revenue to be between $27 billion and $29 billion, while the analysts expect sales of $30,15 billion.

The organization explained that revenue will grow more slowly because of the inflation, supply chain disruptions at advertisers, and Apple’s new privacy policy. Meta’s performance is also being negatively impacted by a shift in users to less monetizable products, including the Reels service competing with TikTok.

Author: