![]() ![]() Meta’s shares lost almost two-thirds of their value in 2022 and, as a result, these poor results, with a 41% drop in annual profit, were already taken into account. The fourth-quarter revenue drop was, in fact, the largest ever recorded by the company, but somewhat less than what analysts were forecasting. Both were presented along with the 2022 closing results, which report Meta’s first revenue drop in history. Investors are applauding the company’s cost-cutting targets and its share buyback plan. This is the largest rise Meta – the parent company of Facebook, Instagram and WhatsApp – has seen since July 2013. ![]() What was already on the cards in Wednesday’s after-hours trading, was confirmed on Thursday, with shares rising of 23%. However, it was not all gloomy in the tech sector, as Apple posted record revenue in its last quarter, rising 8 percent to $90.1 billion.Meta Platforms has soared on the stock market. "My gut feeling is that tech companies are leading where other companies will follow in the coming months," Dan Boardman-Weston, CEO of BRI Wealth Management, told the Wall Street Journal. stock futures on the Nasdaq-100, which includes many tech companies, fell 0.8 percent, while S&P 500 futures lost 0.4 percent. Federal Reserve to tame the inflation, also causing investors to reprice tech stocks. Interest rates have been risen by the U.S. The poorly received results indicate a slowdown in digital advertising and a cutting of marketing budgets amid soaring inflation. E-commerce giant Amazon has also announced a downbeat outlook for the latest quarter. There was a brutal sell-off of technology stocks this week as other major companies such as Google's owner Alphabet and Microsoft reported poor earnings. Newsweek has contacted other equity analysts for further comment. "If Mark Zuckerberg does not listen to the market and continues down the 'move fast and break things' mentality on his company's finances in his quest to create a new computing platform for the future, he could end up breaking things so much that Meta gets constrained so severely that it will go on to lose future battles against its competitors." "Investors are telling Mark Zuckerberg to lower his ambitions and spend less money on the Metaverse, but the founder is doubling down, saying operating losses will increase further next year from the current level of $12.7bn in the past year," Garnry added. Peter Garnry, head of equity strategy at Saxo Bank, wrote on Thursday: "Meta has gone from its highest free cash flow in its history in Q4 2021 to the lowest in more than 10 years only three quarters later, as Mark Zuckerberg is betting everything on the Metaverse as the computing platform of the future. ![]() In February, the company also reported its first-ever fall in daily user numbers. Rivals such as TikTok have hurt the social-media company, as well as a slowdown in online advertising spending and challenges from Apple's iOS privacy update, which Facebook said would result in a $10 billion revenue loss this year. Meta's stock has been in freefall throughout 2022, by more than 60 percent. Elon Musk buys Twitter: Update on the celebrities who said they'd boycott.Meta shares drop 23 percent following disappointing quarterly report.Facebook hit with $25 million in fines for breaking Washington election law. ![]()
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