Meta(re)verse
$Meta Platforms(META.US$ cratered 20% AH on Wednesday following a mixed Q3 earnings report where the company topped revenue expectations, but missed on profits and warned of near-term sales challenges. The results wiped $65B off of Meta's market capitalization, and followed a megacap selloff prompted by the earnings of fellow tech giants Alphabet (GOOG, GOOGL) and Microsoft (MSFT) (and even Snap (SNAP) last week). Serious concerns have surfaced in the advertising space, partly due to Apple's (AAPL) privacy changes, as well as rising competition from rivals like short-form video app TikTok.
By the numbers: Meta's revenues fell by 4%, better than expected, to land at $27.7B, while costs and expenses weighed on operating income, which tumbled by 46% to $5.6B. Meanwhile, Facebook daily active users rose 3% to 1.98B, above an expected 1.86B, and monthly active users rose 2% to 2.96B (just short of expectations for 2.97B). As for its "Family of Apps," including Instagram and WhatsApp, family daily active people rose 4% to 2.93B, and family monthly active people rose 4% to 3.71B. Ad impressions across the family even rose 17%, but average pricing per ad fell 18%.
"While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth," CEO Mark Zuckerberg said in his typically terse initial earnings comment. "I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded."
Meta losses: Revenue from Reality Labs, the company's metaverse unit, nearly halved to $285M in Q3, while losses were $3.7B compared with $2.6B a year ago. The company expects operating losses for the division to "grow significantly year-over-year" in 2023, but still believes that's where its future lies. So far, Reality Labs has bled $9.4B this year
By the numbers: Meta's revenues fell by 4%, better than expected, to land at $27.7B, while costs and expenses weighed on operating income, which tumbled by 46% to $5.6B. Meanwhile, Facebook daily active users rose 3% to 1.98B, above an expected 1.86B, and monthly active users rose 2% to 2.96B (just short of expectations for 2.97B). As for its "Family of Apps," including Instagram and WhatsApp, family daily active people rose 4% to 2.93B, and family monthly active people rose 4% to 3.71B. Ad impressions across the family even rose 17%, but average pricing per ad fell 18%.
"While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth," CEO Mark Zuckerberg said in his typically terse initial earnings comment. "I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded."
Meta losses: Revenue from Reality Labs, the company's metaverse unit, nearly halved to $285M in Q3, while losses were $3.7B compared with $2.6B a year ago. The company expects operating losses for the division to "grow significantly year-over-year" in 2023, but still believes that's where its future lies. So far, Reality Labs has bled $9.4B this year
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JJ Hou OP : Meta, which was the sixth biggest US company by market capitalisation at the start of the year, will now be smaller than companies including Chevron and P&G... https://www.businesstimes.com.sg/garage/metas-spiralling-rout-puts-it-on-brink-of-losing-top-20-status
Justin Zacks : $Meta Platforms (META.US)$ is now trading at levels last seen in 2015.