Posted on 02/03/2022 6:09:21 AM PST by lasereye
Meta Platforms which owns Facebook, Instagram, and WhatsApp, is seeing its stock go into freefall. The shares were more than 22% in lower in premarket trading Thursday. If the shares finish more than 18.96% lower in regular trading in the day ahead, it will be the worst one-day plunge for the stock in the company’s history.
While sales came in ahead of estimates, earnings were weaker than expected and the group’s guidance was truly dismal: Revenue is expected to come in between $27 billion and $29 billion in the current quarter. Representing comparatively anemic annual growth of 3% to 11%, it’s not what’s usually expected from the company.
Meta cited headwinds from a number of factors, key among which was lower user impressions hitting advertising dollars. Meta also saw issues with pricing that stem from disruptive new rules that Apple has introduced for mobile ads, as well as lower ad budgets as businesses face cost inflation and supply chain disruptions.
Wall Street will be closely watching what happens next, and not just because it could have a wider impact on the stock market. Two questions need to be answered: Is social media use in decline generally, or just at Meta? And is ad spending dropping, or just shifting away from Facebook?
We may have some clarity on those two questions today. Social media peers Snap (SNAP) and Pinterest (PINS) are set to report earnings after the close.
“We expect continued headwinds from both increased competition for people’s time,” Meta said in its earnings release.
It’s possible that people are using social media less with the darkest days of the Covid-19 pandemic behind them. More likely is that there’s a new kid on the block: TikTok,the video-based social media powerhouse owned by China’s ByteDance.
(Excerpt) Read more at barrons.com ...
This is just heartbreaking. Poor Zuck.
Extended hours
$247.45-75.55 (-23.39%) with 13 minutes to go before the opening.
Happy Days are Here Again-—As Bannon would say: Suck on that Zuckerberg.
Facebook and Peloton, falling on the floor...
Trumps soon to be platform having an effect.
Extended hours
$33.71-2.80 (-7.67%)
And this is the pre-opening numbers for our other favorite company—Twitter.
Bad week for men with Zucker in their names.
Make
Everything
Trump
Again
Lol top notch!
"But that’s not the only reason for the crash. Deep in Meta’s earnings slides, the company revealed that its user growth has slowed to a little more than a trickle. And in the case of daily active Facebook users in particular, the company actually lost 1 million ."
Volume—after hours—10,176,457
Average Volume for the entire day (10 days) 27,959,300
A whole lotta shares were traded overnite!!!!!!!!
Just hit -25%...he he he...
$243.4201-79.5799 (-24.64%)
FACEBOOK OPENING FOR REGULAR TRADING!!!!!!
FACEBOOK got a $250 BILLION haircut!!!!!!!
-26%
Meta cited headwinds from a number of factors, key among which was lower user impressions hitting advertising dollars. Meta also saw issues with pricing that stem from disruptive new rules that Apple has introduced for mobile ads, as well as lower ad budgets as businesses face cost inflation and supply chain disruptions.
Also removing everyone who doesn't bleat "Four shots good, two shots bad" didn't help.
It’s a strange world where 3 to 11% growth possibly resulting in $29 billion in revenue is a “disappointment” and causes a stock to plunge. That’s as much revenue as the entire movie industry, and the revenue is still climbing. Too much emotion in the market.
FB
META PLATFORMS INC CL A
$238.9141-84.0859 (-26.03%)
after 9 minutes of regular trading!!!!
“””It’s a strange world where 3 to 11% growth possibly resulting in $29 billion in revenue is a “disappointment” and causes a stock to plunge.””””
Not strange at all. Facebook share price is based on revenue and profits continuing to rise exponentially.
When a slowdown in future revenue and profits is indicated, these high flyers run out of hot air.
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