Zuckerberg focus meta stock plunges11/1/2023 “While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. “Our community continues to grow and I’m pleased with the strong engagement we’re seeing driven by progress on our discovery engine and products like Reels,” said Meta founder and Chief Executive Mark Zuckerberg (pictured). However, these numbers were more or less flat compared to the prior quarter. Monthly active users meanwhile came to 2.96 billion, up 2%. It said that 1.98 billion people use at least one of its applications every single day, up 3% from a year ago. The social media giant did at least report increased user growth across its platforms, which include WhatsApp, Messenger and Instagram. As for revenue, Meta reported $27.71 billion, just above the analyst consensus of $27.38 billion but down 4.5% from the same period last year. Net income for the period came to $4.395 billion, down from $9.19 billion a year ago. Meta reported earnings before certain costs such as stock compensation of $1.64 per share, well off Wall Street’s expected $1.89 per share. have reported a downturn in advertising in the past week or so. The results underscore the big challenges faced by ad-reliant technology platforms amid a weakening economic climate that’s pushing brands and marketers to spend less. took another beating today after posting third-quarter results that missed expectations and offering weak guidance. 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 firm Meta Platforms Inc. "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 realize that buying their stock is no longer mostly an investment into their ad platform," said Flynn Zaiger, CEO of social media agency Online Optimism. The tech giant, which changed its name in October to reflect its metaverse aims, is betting the metaverse will be the successor to the mobile internet. Meta did not comment on the price of a deal with Roundhill Investments, which said in January it would stop using the symbol for its Roundhill Ball Metaverse ETF. The company said on Wednesday it would this year change its stock ticker to "META," the latest step in its rebrand to focus on the metaverse, a futuristic idea of virtual environments where users can work, socialize and play. The company has not made public the sales numbers for its virtual reality Quest headsets. Reality Labs posted revenue of about $2.3 billion in 2021. Zuckerberg had previously warned that the company's investment in this area would reduce 2021 operating profit by $10 billion and would not be profitable "any time in the near future." It was the first time the company had broken out this segment in its results. Net loss from Meta's Reality Labs, the company's augmented and virtual reality business, was $10.2 billion for the full year 2021, compared with a $6.6 billion loss the previous year. In Meta's earnings call, he said competition for users was one factor impacting the business, mentioning short video app TikTok by name and emphasizing Meta's commitment to providing services for young adults. "I'm encouraged by the progress we made this past year in a number of important growth areas like Reels, commerce, and virtual reality, and we'll continue investing in these and other key priorities in 2022 as we work towards building the metaverse," CEO Mark Zuckerberg said in the earnings release. The company's total revenue, the bulk of which comes from ad sales, rose to $33.67 billion in the fourth quarter from $28.07 billion a year earlier, beating analysts' estimates of $33.40 billion, according to IBES data from Refinitiv. "It's clear that there are many big roadblocks ahead as Meta faces tough new competition for ad revenue such as TikTok, and as it contends with ongoing ad targeting and measurement challenges from Apple's iOS changes," said Insider Intelligence analyst Debra Aho Williamson. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights A 3D printed Facebook's new rebrand logo Meta is placed on laptop keyboard in this illustration taken on November 2, 2021.
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