10/7/2023 0 Comments Meta stock crash![]() It’s why he renamed the company Meta and is focusing on releasing new VR and AR headsets.īut the effort will cost the company significant capital. Zuckerberg is pinning much of his company’s hopes on the metaverse as a means to restore user growth. Metaverse dreams are still far off, and costly In the U.S., the company made $60.57 per user, up from $53.56 in the same quarter the previous year.Īverage revenue per Meta family of apps users grew from $7.38 in Q4 2020 to $9.39 in Q4 2021. ![]() Still, Meta is continuing to monetize users at an increasing clip, with average revenue per Facebook user climbing from $10.14 in Q4 2020 to $11.57 in Q4 2021. Those services added 7 million monthly active users and 5 million daily active users, respectively. Meta’s main growth prospects continue to lie with its family of apps, which include Instagram and WhatsApp. Wehner laid out the problem in starker terms saying the company will miss out on $10 billion due to iOS’s privacy settings.įacebook's founder and CEO Mark Zuckerberg reacts as he speaks at the Viva Tech start-up and technology summit in Paris, France, May 24, 2018. The other is that measuring those outcomes became more difficult.” “One is that the accuracy of our ads targeting decreased, which increases the cost of driving outcomes. “Apple created two challenges for advertisers,” Sandberg explained. Without accurate ad targeting, advertisers will shift away from services like Meta and spend their advertising budgets on other platforms or services. Turning the feature off keeps company’s like Meta from being able to learn more about its users, which impacts ad targeting. Apple’s iOS privacy changes will hurt Meta through 2022ĭuring Meta’s earnings call, both CEO Mark Zuckerberg and COO Sheryl Sandberg pointed to Apple’s App Tracking Transparency feature, introduced in April 2021, as the chief problem facing the company’s ads business.Īpp Tracking Technology asks users if they want their apps to have the ability to track their activity across the web. But that’ll take years to come to fruition, and investors may not wait that long. Meta’s seeming cure for the problem? Investing in the metaverse, where it hopes to become the go-to company for interconnected digital worlds. Meta’s rebrand comes at a time of increasing scrutiny from lawmakers and regulators over allegations of anticompetitive conduct and over the impacts of how it handles harmful or misleading content across its Facebook and Instagram platforms.Facebook parent Meta's stock is sinking following its Q4 earnings report. “Investing in Meta now looks more like a commitment that you believe that the metaverse will replace much of the Internet consumers’ experience today.” ![]() “Investors looking at Meta are starting to realise that buying its stock is no longer mostly an investment into its ad platform,” said Mr Flynn Zaiger, CEO of social media agency Online Optimism. The company said on Wednesday it would change its stock ticker to “Meta” this year, the latest step in its rebrand to focus on the metaverse, a futuristic idea of virtual environments where users can work, socialise and play.įacebook, which changed its name in October to reflect its metaverse aims, is betting that the metaverse will be the successor to the mobile Internet. ![]() The company has not made public the sales numbers for its virtual reality Quest headsets. Reality Labs posted revenue of about US$2.3 billion in 2021. Mr Zuckerberg had previously warned that the company’s investment in this area would reduce 2021 operating profit by US$10 billion and would not be profitable “any time in the near future”. The net loss from Meta’s Reality Labs, the company’s augmented and virtual reality business, was US$10.2 billion for the full year of 2021, compared with a US$6.6 billion loss the previous year. Stocks have risen the last four days as the markets try to rebound from a bruising January pressured by worries over shifting US Federal Reserve policy and uncertainty over the crisis in Ukraine.īut the sharp fall in Meta and some other tech names "is raising doubts about the sustainability of the broader rebound effort," said analyst Patrick O'Hare. Other tech giants such as Apple and Google parent Alphabet have rallied after results - though they both recently posted excellent numbers that calmed jittery markets. However, Thursday's dramatic sell-off is the latest to confront a Big Tech firm after a similar liquidation of Netflix shares last month, though the streaming giant has somewhat rebounded since. The internal documents leaked by ex-worker Frances Haugen highlighted accusations that executives prioritised growth over keeping their billions of users safe. One way out of Meta's troubles would be to acquire the next big thing in social media, as it has done previously.īut the company is under considerable scrutiny from US regulators after the damning allegations that emerged from its whistleblower crisis last year.
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