Foreign media: the “bright blind” Wall Street Journal fell for the first time after Facebook changed its name


On February 3, after Mark Zuckerberg, founder and CEO of Facebook’s parent company meta, announced his bet on metauniverse, the company’s first financial report on Wednesday surprised investors.
The following main financial and operational data:
–Earnings per share: $3.67, less than the $3.84 expected by Wall Street analysts;
–Revenue: $33.67 billion, exceeding the $33.4 billion expected by Wall Street analysts;
–Daily active users: 1.93 billion, less than the 1.95 billion predicted by Wall Street analysts;
–Monthly active users: 2.91 billion, less than 2.95 billion expected by Wall Street analysts;
–Average revenue per user: $11.57, exceeding Wall Street analysts’ estimate of $11.38.
Meta financial report shows that the profit in the fourth quarter of last year fell more than expected, and the prospect is bleak. Affected by this, meta plummeted by more than 20% after hours, which means that if it opens with the share price of after hours trading on Thursday, the market value of the company will evaporate about $180 billion.
Compared with the previous quarter, the number of daily active users of Facebook decreased slightly in the fourth quarter, which is the first quarterly decline in the number of daily active users of the platform since records began.
Q1 performance guidelines were lower than Wall Street expectations
In addition to the lower than expected fourth quarter net profit and user data, meta also released disappointing first quarter performance guidelines.
Meta predicts that the revenue in the first quarter of 2022 will be between $27 billion and $29 billion, less than the $30.15 billion expected by Wall Street. This means that the revenue growth of meta in the first quarter will be 3% to 11%, less than the 15% expected by Wall Street.
Meta said it was impacted by a variety of factors, including apple IOS privacy changes and macroeconomic challenges. The company blamed the lower than expected growth in part on inflation and supply chain issues affecting advertisers’ budgets. In addition, users turn to products with non dynamic news, which also affects meta’s overall revenue. For example, people spend more time on reels video service.
With the name changed to meta, the company’s financial reporting structure has also been adjusted accordingly.
Starting from the financial report of the fourth quarter of 2021, meta regards meta Reality Laboratory (FRL) as an independent reporting department. As announced, the company is investing a lot of resources in augmented and virtual reality products and services, which is an important part of its work to develop the next generation of online social experience.
Under this reporting structure, meta provides revenue and operating profit data of two market segments: the first market segment, application family, including meta, instagram, Messenger, WhatsApp and other services. The second segment is meta reality lab, which will include hardware, software and content related to augmented virtual reality.
Meta said that in the fourth quarter, the revenue from the application family was $32.794 billion, compared with $27.355 billion in the same period last year; Operating profit was $15.889 billion, compared with $14.874 billion in the same period last year. In the fourth quarter, the revenue from reality laboratory was US $877 million, compared with us $717 million in the same period last year; The operating loss was $3.304 billion, compared with $2.099 billion in the same period last year.
“The meta reality lab is a huge unknown,” said Brad Erickson, capital markets analyst at Royal Bank of Canada
Social media plummeted
For the fourth quarter of 2021, meta proved to be an outlier among the top technology companies.
The day before the company announced its results, alphabet released results that crushed Wall Street’s expectations, driving its share price up more than 7% on Wednesday. Apple and Microsoft’s profits and revenue also exceeded expectations.
Despite the sharp decline in technology stocks across the board in January, other industry giants except Netflix released exciting financial data to remind investors of their power to dominate the business even in a challenging macro environment.
Affected by this, the shares of social media operators pinterest, snap and twitter plunged in after hours trading on Wednesday. Among them, snap’s share price plummeted by more than 20%; Pinterest shares fell 10%; Twitter shares fell 7%.
This impact is not limited to social media. Amazon’s share price, with its growing advertising business, fell 3%. Amazon reported earnings on Thursday. Microsoft’s share price fell nearly 1%. The company also has online advertising business, including commercial social network LinkedIn. Satya NADELLA, Microsoft’s chief executive, talked about digital advertising opportunities last week. He told analysts that Microsoft’s advertising revenue, including LinkedIn, has exceeded $10 billion in the past 12 months. (no taboo)