![]() ![]() Meta may be further ahead in establishing itself in the metaverse, but that remains “a far-off revenue opportunity,” said Ives of Wedbush.ĭoes Meta’s big miss spell trouble for other corporate earnings? Things were looking pretty good at the halfway point of earnings season, as we noted yesterday, but the stock market’s four-day winning streak looks in danger today, based on futures trading. Meta’s offerings in video, including Instagram’s Reels, can compete with TikTok for attention, but “it will take a while to compound and catch up there,” Zuckerberg said. On yesterday’s earnings call, Zuckerberg acknowledged that the company is losing users to TikTok, especially younger ones. ![]() Facebook’s namesake app reported the first (small) drop in users in its history. Other factors better explain the stock plunge. That is an eye-catching sum - but investors knew that spending was coming. Meta said it spent $10 billion last year on technologies developed by the unit that could eventually allow it to host users in a virtual world. The biggest hit to profits, which declined 8 percent in the fourth quarter and fell shy of analyst estimates, was spending on the Reality Labs division. The tech analyst Dan Ives of Wedbush Securities summed up the quarter as “an unmitigated disaster.” (The company is now called Meta, after all.)īut those investors have sent Zuckerberg a strong message about the current state of his company, with Meta’s shares dropping as much as 20 percent in after-hours trading - erasing more than $175 billion in market value - in response to a disappointing set of quarterly results. Lately, Mark Zuckerberg has been redirecting investors’ attention away from Facebook’s existing social media platforms and toward the exciting future of virtual worlds in the metaverse.
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