Facebook subsidiary owner Meta Platforms shares plunged more than 18% after the closing bell on Wednesday as the societal cancer missed on Wall Street earnings estimates and posted a weaker forecast.
Elizabeth Culliford and Nivedita Balu for Yahoo Finance:
Meta, the parent company of social media platforms Facebook and Instagram, said it was expecting current-quarter revenue below analysts’ expectations, as Apple Inc’s privacy features keep businesses from opting to advertise on social media sites.
The company forecast first-quarter revenue in the range of $27 billion to $29 billion. Analysts were expecting $30.15 billion, according to IBES data from Refinitiv.
Apple’s changes to its operating software give users the preference to allow tracking of their activity online, making it harder for advertisers who rely on data to develop new products and know their market.
The company’s total revenue, the bulk of which comes from ad sales, rose to $33.67 billion in the fourth quarter from $28.07 billion a year earlier, beating analysts’ estimates of $33.40 billion, according to IBES data from Refinitiv.
MacDailyNews Take: Gee, that’s too bad. 🤣
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Ouch, currently down about 70 points to around 252. After hours can be dramatic but it’s hard to see it making up this much in tomorrow’s market session.
Revenue YoY was solid but that’s a substantial drop in EPS (and that isn’t factoring in share buybacks). And Wall Street does not like formal guidance that comes in notably below previous estimates.
Facebook said they wanted Apple to feel pain. Doesn’t appear that plan is working yet.
The sooner that company disappears off the face of planet Earth the better.
Amen 🙏, thank you for speaking my mind.
So investes weren’t happy about the…Meta data?
I know that FaceBook’s true customers are NOT its users. The customers are those who buy ads. However, I wouldn’t invest in a company that intentionally alienates a large portion of its potential users, the primary resource who provide content. That content is why users are there, and they see the ads. You lose users and you lose content AND eyeballs. And then you steadily lose ad revenue. FaceBook can blame Apple, but that’s not the true reason for a long term decline. FaceBook is no longer in business to increase value for its shareholders. Wouldn’t want to be that shareholder.