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Meta Platform Plunges as Q4 Earnings Miss, Weaker Guidance Rattles Investors

Published 02/02/2022, 04:13 PM
Updated 02/02/2022, 04:33 PM
© Reuters

By Yasin Ebrahim

Investing.com - Meta Platforms (NASDAQ:FB) reported quarterly earnings that missed forecasts and social media giant flagged slower growth ahead on concerns about rising competition and the impact of Apple (NASDAQ:AAPL)'s privacy changes.    

Meta Platforms parent company Facebook slumped more than 20% in after-hours trade following the report.

Facebook announced EPS of $3.67 on revenue of $33.67 billion. Analysts polled by Investing.com anticipated EPS of $3.85 on revenue of $33.34 billion.

Advertising revenue rose 20% to $32.64 billion.

Daily active users (DAUs) rose 5% to 1.93 billion, while monthly active people (MAUs) rose 9% to 3.59 billion. 

Looking ahead to Q1, the company said it expected advertising revenue to be impacted by headwinds to both impression and price growth.

Impressions is set to take a hit from increasing competition, and increasing popularity of its video surfaces like Reels will take growth away from its higher margin segments like feed and stories.

Commenting on price headwinds, Meta flagged Apple's iOS privacy changes as another headwind to growth at a time when rising costs are impacting advertiser budgets.

Q1 2022 total revenue was guided in a range of $27-to-29 billion, below Wall Street estimates of $30.27 billion consensus.

Latest comments

every platform has a root market indicator
Alphabet
in 3 weeks Truth Social comes online. Can't help but believe it's going to reduce the value of META, TWTR, GOOG.
been using duck duck go instead of Google for a year now and it seems Google doesn't care
Oculus was great before FB ruined them. Nobody wants anything to do with this dystopian nightmare.
why would the market give two hoots about facebook. a company that so badly mismanaged and abused its brand that it had to run away from it and create a new brand in hopes that stupid investors might not realize that "meta" is just facebook and Zuckerberg? do you think google or Microsoft will ever have to run from their own name because their actions made their brand FUBAR?
Great time to buyit will go back upto $300 within the month $1000 in 1 yesr))$
Some people with money did some dip buying AH. Last price before 8 PM went back to the 323 closing price. Hmm
What ticker tape are you looking at?
I hope this POS Russian tool fades into the dustbin of history
zuck needs to be eliminated
uh oh, I better sell
hello 👋 👋 my team
than why all tech are falling in after market?
There's this thing called FAANG - the first letter is Facebook. Without one of those letters keeping the tech sector up, the market will fall because those 5 names are all that's propping up the Q.
Reasons seem specific to the company, not the economy
your missing the point... I think Microsoft's amazing earnings were generated 6 months ago. Earnings are only going to get worse. And no, my comment won't move the markets
It's not so much the earnings miss but the weak guidance
who in the world still uses Facebook? lol grandma's, that's who
So true man, I check it like once every two days compared to 10 years ago when I'd check it every few hours 🤣🤣🤣 so sad
So Mark said that because Apple’s concern for the privacy of Apple’s customers he sees headwinds for his profits without exploiting the privacy of Facebook’s customers. Well put Sir.
Couldn't have happened to a "nicer" guy...
Social media has worn out its welcome.
spell check anyone?
was about to say the same thing - obviously in a hurry to get it published after the result appeared
it is AI
Thanks for pointing out, we corrected a few typos.
so much for tech leading the charge
yeah, there's only so much BS the lamestream media can throw at us before it all turns to BS - they're just being paid to encourage the retail investor to buy the dips whilst the billionaire class are selling the rips
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