Meta Platforms Inc. It is the latest technology company to feel the economic downturn as it announced Wednesday its slowest sales growth in a decade and released sluggish earnings guidance.
Meta chief executive Mark Zuckerberg said in a statement that the “revenue windfall” would lead to a recession in investments. Webcast presentation With analysts late Wednesday.
However, the role of meta in FB,
Post-trade rose more than 18% on Wednesday after the company was formerly known as Facebook Revealed First-quarter earnings were up $ 7.47 billion, or $ 2.72 a share, $ 9.5 billion or $ 3.30 a share, up 7% from $ 26.2 billion a year earlier, to $ 27.9 billion in sales last year.
Gains per share averaged $ 2.56, but according to analysts voted by FactSet, sales were lower than the consensus of $ 28.3 billion.
Meta released revenue estimates of $ 28 billion to $ 30 billion in the second quarter, while analysts forecast $ 30.7 billion. Facebook executives say inflation, supply chain problems, the war in Ukraine, European economic interventions, increased competition for services such as TikTok and Apple Inc. Changed AAPL,
Developed in its mobile operating system, it makes it very difficult for apps to keep track of consumers in ads.
Further: Meta CFO cries ‘wolf’ again with a dark Facebook look – but he may be right this time
In a white paper released by Apple on Tuesday, Kinshuk Gerad, a business professor in marketing at the Columbia Business School, concluded that it would be speculative to claim that billions of advertising dollars were transferred to Apple from companies such as Meta as a result of Apple’s action.
“This outlook reflects a continuum of trends affecting revenue growth in the first quarter, including the softening in the second half of the first quarter, which coincided with the war in Ukraine,” said Meta chief financial officer David Wehner. Report Announces results. “Based on current exchange rates, our guidance predicts that in the second quarter, foreign exchange growth will slow to approximately 3% per annum.”
At the webcast presentation, Zuckerberg acknowledged the impact of Dictoc and Apple, but said that Meta was confident of addressing each company, respectively, in its reels short format videos and artificial intelligence. The company’s motivation in metawares will increase revenue, especially in advertising.
Mixed The results will come Less sales and revenue than expected From Google parent Alphabet Inc GOOGL,
GOOG,
On Tuesday, with war raging in Ukraine and inflation burning in consumer pocket books, concerns deepened that advertising-dependent companies could face a worse situation. Snap Inc. SNAP,
It warned of a “challenging operating environment” Reported Last week’s results, Pinterest Inc. PINS though,
Shares Rose after earnings on Wednesday.
Daily active users, or DAUs, the key measure of meta growth worldwide, is up 4% to 1.96 billion, topping analysts’ expectations of 1.95 billion. The development has greatly reduced investors who have openly regretted the low user engagement on Facebook’s sites.
“The growth of (DAUs) is a good sign for Facebook, especially since it experienced its first decline in DAUs since Q4 in 2021. But it is also clear that Facebook is still struggling to bring in new users, and it is becoming harder for Instagram to take a slump,” Insider Intelligence said. Said Evelyn Mitchell, a researcher at [monthly active users] And the DAUs in Q1 are coming from other parts of the world, not just the United States and Canada, which are making the best money. “
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Meta’s share of technology this year is the worst, falling 48% so far, while the broader S&P 500 Index SPX,
Decreased by 12% in 2022.
“Lifelong social media lover. Falls down a lot. Creator. Devoted food aficionado. Explorer. Typical troublemaker.”