🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Meta Platform Plunges as Q4 Earnings Miss, Weaker Guidance Rattles Investors

Published 02/02/2022, 04:13 PM
Updated 02/02/2022, 04:33 PM
© Reuters
AAPL
-
META
-

By Yasin Ebrahim

Investing.com - Meta Platforms (NASDAQ:FB) reported quarterly earnings that missed forecasts and social media giant flagged slower growth ahead on concerns about rising competition and the impact of Apple (NASDAQ:AAPL)'s privacy changes.    

Meta Platforms parent company Facebook slumped more than 20% in after-hours trade following the report.

Facebook announced EPS of $3.67 on revenue of $33.67 billion. Analysts polled by Investing.com anticipated EPS of $3.85 on revenue of $33.34 billion.

Advertising revenue rose 20% to $32.64 billion.

Daily active users (DAUs) rose 5% to 1.93 billion, while monthly active people (MAUs) rose 9% to 3.59 billion. 

Looking ahead to Q1, the company said it expected advertising revenue to be impacted by headwinds to both impression and price growth.

Impressions is set to take a hit from increasing competition, and increasing popularity of its video surfaces like Reels will take growth away from its higher margin segments like feed and stories.

Commenting on price headwinds, Meta flagged Apple's iOS privacy changes as another headwind to growth at a time when rising costs are impacting advertiser budgets.

Q1 2022 total revenue was guided in a range of $27-to-29 billion, below Wall Street estimates of $30.27 billion consensus.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.