Meta lost almost 25% of its capitalization in the post-trade session following the release of its Q4 2021 report.
Investors were shocked by EPS ($3.67) and the forecast for revenue in January-March ($27 billion-$29 billion) below market expectations of $3.84 and $30 billion, respectively.
The metrics of the number of active users were also disappointing - both daily (an anti-record was set) and monthly, except the indicator of revenue attributable to each account.
The company attributed the deterioration in operating performance to a change in privacy rules in Apple's iOS and macroeconomic problems. In particular, rising inflation and supply chain difficulties have taken a toll on advertisers' budgets. The reorientation of users to less monetized products, including the Reels service competing with TikTok, also affected.
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Facebook's metaverse division Reality Lab posted a $3.3 billion loss on $877 million in revenue.
The slowdown in business growth occurred in the context of a large-scale rebranding.
The company is aiming to move to the "next stage in the evolution of social connections" in the form of metaverses, which is reflected in the renaming of the company from Facebook to Meta.
At a conference with analysts, CEO Mark Zuckerberg recalled the creation of digital avatars for virtual and augmented reality, a neural interface for control, and the environment for their existence.
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Previously, Meta opened access to the Horizon Worlds virtual reality social network for adult residents of the United States and Canada.
Recall that in January 2022, the founder of the stablecoin project Diem (formerly Libra) as part of the Diem Association Meta announced its sale to Silvergate Capital Corporation. The deal is expected to be worth $200 million.