Facebook’s parent company, Meta, lost about $200 billion in late trading after the release of quarterly results.
About it informs financial times.
The reason for this reaction of investors was the publication by the company of its results for the fourth quarter of the last financial year. Although the company’s sales met market expectations and reached $33.7 billion, Meta failed to meet revenue and active user forecasts.
Thus, the tech giant earned $10.3 billion against the expected $11 billion. At the same time, the company for the first time in its history reported a reduction in the number of day active users from 1.93 billion people to 1.929 billion people.
Within a month, that figure stalled at 2.95 billion people, which begs the question of what the future of Meta will be.
As a result, the company’s shares fell more than 20% in late trading, cutting Meta’s market value by $200 billion.
Such results of the company are due, in particular, to the loss of the younger part of the audience by Meta social networks. The company expects to earn less profit than investors expect in the first quarter as a result of competing with other platforms.
Meta said it expects first-quarter 2022 revenue in the range of $27 billion to $29 billion, equivalent to 3% to 11% YoY growth.
First of all, we are talking about competition with TikTok, a social network with short videos, which overtook Google in terms of the number of visits last year. Meta previously noted that they are working on their social networks to compete with TikTok for a younger audience.
