![]() Meta faces increased competition, particularly from video star TikTok as well as messaging services such as Telegram and Slack.ĥ. But major investors in the stock market are averse to waiting a long time for big returns, tending to trade shares based on potential for quick gains. Zuckerberg had, however, previously warned that the company's investment in this area would reduce 2021 operating profit by $10 billion and would not be profitable "any time in the near future. 3.Meta also reported $10 billion in operating losses from its nascent metaverse business in the AR and VR unit. Meta has forecast first-quarter revenue in the range of $27 billion to $29 billion while analysts were expecting $30.15 billion. The company also posted net income of nearly $10.3 billion in the final three months of last year, a decline of 8% from the same period a year ago. “Increase in data pricing would have made some consumers more cautious about how they use data,” said Neil Shah, vice president, research at Counterpoint Research. Prices of data plans rose up to 25% in the last quarter across the three telecom service providers - Bharti Airtel, Reliance Jio and Vodafone Idea. ![]() Meta said user growth in India was limited by an increase in data package pricing. He also blamed rising internet costs for consumers in India and increasing interest in ByteDance Inc's video-sharing app TikTok. India angle: Meta Chief Financial Officer Dave Wehner on Wednesday told financial analysts part of the usage decrease for the main Facebook app and website came from fewer COVID-19 lockdowns, which have tended to generate a boom in online activity. In July 2018, the company lost $119 billion in market cap in a single day after reporting slowing growth in its second-quarter earnings. It was the biggest one-day decline for a stock in US history and its single-day decline would be more than the market value of about 470 of the S&P 500's members. The 26% crash wiped out $232 billion from its market value. It is hence not surprising that Meta is in the midst of a historic stock collapse after its earnings showed no growth in monthly Facebook users last quarter relative to the prior period, raising concerns about the company's future. Add to that slow growth numbers, a lower revenue forecast for the next few months, failure to generate advertising revenue from Reels and added costs due to changes in Apple’s operating system that prevent ad-tracking. The biggest troubling sign for the company is that fewer people logged on to Facebook every day per quarter than they did the year before for the first time during the last three months of 2021. Source: TipRanksĪ majority of the analysts at 16 recommend buying Meta, while three are for selling the stock.NEW DELHI: Facebook parent Meta crashed 26 percent in US trading on Thursday on the back of poor earnings results with founder Mark Zuckerberg's wealth plunging by as much as $31 billion in one of the biggest one-day wealth drops ever. Notably, the average price target is a 14.57% change from the last price at the close of the market at $323.00. Analysts remain bullish on FBĪmid the stock crash, 19 Wall Street analysts have placed Meta’s 12-month price target at an average of $370.06 with a high forecast of $460. ![]() However, realizing the full potential of the metaverse will take years to achieve. ![]() The results also potentially explain why the company is increasingly focusing on the metaverse concept. This plunge comes as Meta continues to battle antitrust queries from various jurisdictions globally. The company stated that young people prefer other social platforms, but it’s banking on Instagram Reels to capture the demographic. Meta facing growing competitionĪt the same time, Meta’s disappointing results highlight the impact of growing competition in the market from TikTok, Snapchat, and Twitter. Therefore, Facebook is likely to lose market dominance to other players like Alphabet. It’s on the order of $10 billion, so it’s a pretty significant headwind for our business,” said Meta CFO Dave Wehner.Ĭonsequently, the privacy feature alters the behind-the-scenes mechanics of mobile ads, especially those that confirm if a purchase or download was made. “We believe the impact of iOS overall is a headwind on our business in 2022. Meta mentioned privacy changes introduced by Apple to its iOS operating system, potentially reducing the social media company’s sales by almost $10 billion this year. Meta has cited several factors behind the disappointing results. In 2018, the company lost 19% after registering a reduced user growth resulting in a $119 billion decline in market capitalization. The latest plunge is the second high profile in Meta’s history. ![]() During the results call, Meta stated that it expects current-quarter revenue between $27 billion and $29 billion, missing the analyst estimate of about $30 billion. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |