But the reaction to Meta’s second-quarter earnings may depend more on how it’s coping with the other three headwinds. Apple’s privacy change, by making it harder to effectively target online ads, has cut into ad pricing and jolted Meta’s entrenched position as the 800-pound gorilla in display advertising. Competition from TikTok has stymied and threatens to reverse user growth. And, as Meta fights to compete in short-form videos, it has undertaken a costly transition to a new advertising format. The big question for Meta stock ahead of the Facebook parent’s Q2 report after Wednesday’s close is whether there is light at the end of the tunnel or whether the sun has set on its era of social media dominance. Having crashed 57% from its peak last September, Meta Platforms is wrestling with four big headwinds to earnings growth.

It also said it’s taking a big hit from Apple’s privacy changes, and showed the first quarterly decline in daily active users on record. And it’s not a disaster that will be rectified by next quarter, or even the one after that. While revenues slightly beat expectations, the company warned that the upcoming year was potentially going to be worse for Facebook. “On the impressions side, we expect continued headwinds from both increased competition for people’s time and a shift of engagement within our apps towards video,” Facebook said on the call.

Were down in the dumps outside of regular trading hours and already some investors are talking about buying the big dip. This is different than the privacy scandals and political controversies that have surrounded the company. The rate is one of several key pieces of economic data expected to be released this week. Yahoo Finance Live’s Seana Smith looks at several trending stocks making movements in after-hours trading. For now, though, Meta will need to make the most of the users it has, and continue to work through Apple’s privacy changes.

Facebooks Stock Plunges After Profit Declines

These offers do not represent all available deposit, investment, loan or credit products. In addition to concerns about economic headwinds, the tech sector is facing a distinctly unfriendly regulatory environment in the U.S. Lawmakers in both parties have expressed their concern that big technology companies enjoy too much influence over areas like popular culture and political discourse but face too little accountability. Get browser notifications for breaking news, live events, and exclusive reporting. Shares in Meta Platforms were down in the dumps outside of regular trading hours and already some investors are talking about buying the big dip.

This was the day his company’s stock, which was at $323 at the close of trading the day before, closed at $237, wiping $232 billion off Facebook’s market value, the largest one-day drop in NASDAQ history. Intraday Data provided by FACTSET and subject to terms of use. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.

That drop to 1.929 billion daily users from 1.93 billion the prior quarter is likely a reflection of Facebook’s increasing lack of relevance with young people. Meta doesn’t break out Instagram’s user numbers, but daily users across all of its apps barely nudged higher to 2.82, adding just 10 million users from the third quarter. The stock plummet came five months after Facebook founder Mark Zuckerberg, Meta chief executive, said the company would switch its focus to the metaverse—virtual-reality headsets, augmented-reality glasses, and virtual worlds. The market losses might not hold, especially given the recent wild fluctuations in the tech market, Bloomberg noted.

You may change your billing preferences at any time in the Customer Center or call Customer Service. You will be notified in advance of any changes in rate or terms. You may cancel your subscription at anytime by calling Customer Service. That’s how much Facebook cofounder Mark Zuckerberg’s net worth plunged on Thursday, according to Forbes’ calculations. He is now worth $85.9 billion, dropping below the $100 billion mark for the first time since last year. The company’s stock plunged more than 24% following a disastrous earnings call, signaling that maybe, finally, Wall Street thinks just as poorly of the company as everyone else does.

Diversification is important, even if you don’t have a large portfolio. No investor can predict the future, and historical data only says so much. Determining whether or not Facebook — or any stock, for that matter — is a good buy depends on a number of factors. While investors don’t have a crystal ball, they still base their trading decisions on what is likely to happen in the future, not what has happened in the past. I understand that the data I am submitting will be used to provide me with the above-described products and/or services and communications in connection therewith. In a call with investors, Meta CEO Mark Zuckerberg said the company’s answer to TikTok, a service called Reels, is still being developed.

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The chip company says demand remains high for its chips for handsets and cars, with supply shortages improving amid ongoing bottlenecks. The Nasdaq was down 2.75% today; Meta’s drop was more than double that. Markets broadly slid on Friday as the prospect of rising interest rates spurred a wave of selling. Those stories have flipped relatively quickly — with investors reassessing the companies’ prospects in the face of increased competition and a deteriorating macroeconomic environment.

Rivian marked the most significant capital raise of any U.S. company since Facebook’s public debut in 2012. Almost five years after declaring bankruptcy, Toys “R” Us was given a second life after being acquired by Macy’s parent company, WHP Global, in March 2021. In its 2021 annual report, Facebook reiterated risks it faces related to government regulation and enforcement as well as other litigation, including class action suits. It also noted that unfavorable media coverage could affect its ability to maintain and enhance its brand. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site .

According to app analytics company SensorTower, 86 apps added “metaverse” to their title or description from November 2021 through January of this year. To date, 552 mobile apps include the term “metaverse” in their title or description. The stock finished with its biggest one-day drop ever, ahead of the 19% plummet it saw in July 2018.

What Are Loan Stocks?

His work has been published on several digital platforms in the U.S. and Canada, including The Motley Fool, Finscreener, and Market Realist. Even the COVID-19 pandemic acted as a tailwind for FAANG stocks as demand for their suite of products and services experienced an uptick in the last two years. Last year, Apple changed the privacy setting on its axiory review iPhones and other devices, requiring apps, including Facebook, to get each user’s explicit permission to track their activity on the internet. Prior to that change, Facebook had made extensive use of tracking software to deliver targeted advertising to its users — something its advertising clients were willing to pay a significant premium for.

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Bloomberg Technology The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Live from Hong Kong, bringing you the most important global business and breaking markets news information as it happens. Facebook’s Oct. 28 name change to Meta Platforms made sense for multiple reasons.

Energy stocks have their ups and downs, just like every other sector. It’s a complicated business with a lot of different players, but there’s certainly money to be made. Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy. A good stock portfolio contains a good mix of stocks — small caps, large caps, growth stocks, value stocks, foreign stocks, domestic stocks, and stocks from many different industries.

BU Today: How do you interpret Meta

If you look at social media usage in terms of monthly active users, Facebook is in the top five—it’s Facebook, YouTube, What’s App, Facebook Messenger, and Instagram. The company had warned that advertising growth could be sluggish in the fourth quarter. Even being down for several hours or a day could be enough to shift some users toward competing services, a threat that investors are currently weighing as the company’s share price slides. Facebook stock has been on a tear in 2021, reaching a $1 trillion market cap in early July, though the share price has stalled in recent months with the market cap currently resting just south of $920 billion. We can see why both Meta Platforms and Netflix have underperformed equity markets in the last 12-months.

Zuckerberg blamed the drop in users to mounting competition from rivals such as TikTok. The Dow slipped 518 points, or 1.5%, to close at 35,111 on Thursday, while the broad-based S&P 500-stock index lost 2.4% and the tech-heavy Nasdaq composite shed 3.7%. When she was in her 20’s, my sister and her husband accumulated a lot of credit-card debt, which my parents paid off .

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In consideration of the fact that my sister paid off the credit-card debt, my parents set up the company so that I had a slight majority of the shares. Yahoo Finance tech editor Dan Howley breaks down Microsoft’s fourth-quarter earnings aafx regulated results, which were a miss on both the top and bottom line. In a statement, CFO David Wehner pointed to Apple’s iOS privacy changes, inflation, and exchange rates as the biggest headwinds for the company moving forward.

Oil prices edged up after OPEC and its allies stuck to moderate production increases. Later today, the Commerce Department is expected to report that U.S. factory orders edged 0.2% lower in December following a 1.6% gain in November. The U.S. Department of Laborreportedthat the number of Americans filing new claims for unemployment benefits dropped to 238,000 as of Jan. 29, a decrease of 23,000 from the previous week’s revised count.

The stagnant user figures raised concerns about the company’s ability to grow even as more bad news poured in from its advertising business, which generates the overwhelming majority of the company’s profits. The 27% decline in the company’s share value translated into a loss of more than $230 billion in market value, an utterly unprecedented one-day loss for a single firm. Google parent company Alphabet reported earnings that missed Wall Street expectations after the closing bell on Tuesday. App Tracking Technology asks users if they want their apps to have the ability to track their activity across the web.

Meta is putting a lot of virtual eggs — and billions of dollars — into the metaverse basket, and Wall Street is pretty anxious about it. Ryan Detrick, chief market strategist for LPL Financial, Sam Stovall, chief investment strategist at CFRA, and Jeffrey Hirsch, editor at Stock Trader’s Almanac, answered a few questions for USA TODAY. Mark Zuckerberg announced Facebook the company is rebranding to Meta, with apps like Facebook, Instagram and WhatsApp operating underneath. Here are some key points to help explain the selloff, which has wiped about $220bn (£162bn) off Meta’s market value. Netflix is down nearly 68% since the Nasdaq peak on November 19, while Facebook has lost over 45% of its value since then and is down more than 50% from its high two months earlier.

He rates Facebook’s stock at overweight but cut his price target to $335 from $420. Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning. Her work has appeared on numerous news and finance websites including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC, Equifax.com, and more. However, the segment also reported an operating loss of almost $3 billion.

Facebook owner Meta loses record $232 billion in market value after saying the quiet part out loud

The company, which released earnings under its new name for the first time with a new reporting structure, missed earnings estimates for the fourth quarter at $3.67 vs. $3.84 analysts were expecting, according to Refinitiv. But it beat on revenue for the quarter, at $33.67 billion vs. $33.4 billion estimated. Shares of Facebook parent Meta plunged Thursday after the company forecasted weaker-than-expected revenue growth in the next quarter. Facebook parent Meta fell short with its first-quarter outlook late Wednesday. He has been clear that he intends to ramp up spending on Reality Labs in the years to come and that he sees a combination of AR and VR as the next major computing platform. It’s clear that the biggest problem facing Meta now is the social media business that pays for those investments.

Although quarterly earnings per share were slightly lower than analysts had predicted, revenue was substantially higher and the annual results were positive overall. Increased sales by 7% year over year which was the slowest ever rate of growth. Comparatively, in Q1 of 2021, FB sales grew by more than 47% year over year. Meta has been impacted by Apple’s policy changes which have hurt the company’s ability to sell targeted ads to customers. Deep in Meta’s earnings slides, the company revealed that its user growth has slowed to a little more than a trickle.

Whether it can take market share from TikTok remains to be seen. Facebook noted during the Q3 earnings call that it was under investigation by the government. Since Apple instituted the change, the majority of users have declined to allow Facebook to track their browsing, greatly diminishing the company’s ability to target td ameritrade forex review advertisements. On Thursday, Meta Chief Financial Officer David Wehner told investors the company expects the changes to cost it $10 billion in advertising revenue in 2022. Although the pain was spread broadly across the tech sector Thursday, it was the travails of Facebook that captured much of the public’s attention.

Netflix vs Facebook: Which Beaten

“The defining quality of the metaverse will be a feeling of presence — like you are right there with another person or in another place,” he wrote. Later in February, Meta announced the release of two ad formats for Reels that are semitransparent so as not to interfere with the video content. “We believe the impact of iOS overall as a headwind on our business in 2022 is on the order of $10 billion,” Wehner said on Feb. 2. Meta’s Family of Apps — including Facebook, Instagram, WhatsApp and more — had operating income of $11.48 billion on revenue of $27.21 billion. Industry life cycle analysis is part of the fundamental analysis of a company involving examination of the stage an industry is in at a given point in time.

The company’s core social media business, reported under its Family of Apps, made $32.79 billion in revenue in the quarter with operating income of $15.89 billion. Since its inception, Facebook’s user growth has essentially been up and to the right. But on Wednesday, it reported its first-ever quarterly decline of daily users globally, along with lower-than-expected ad growth that sent its stock plunging roughly 20 percent. Sales in the fourth quarter were $33.67 billion, 20% higher than sales in the same quarter last year and outpacing analysts’ expectations of $33.4 billion, CNBC reported. Facebook finished the quarter with net income down 8% year over year. While Meta’s near-term growth outlook was “disappointing,” 2022 will be a significant year for the company as it ramps up its foray into the metaverse, according to analysts at Bank of America, who maintain a “buy” rating on the stock.