The company attributed the disappointing fourth-quarter results to Apple's new privacy policy, inflation and supply chain disruption.
Shares of Facebook's parent company, Meta Platforms, collapsed by 24.46% at the moment, to $244 per paper, during extended trading on the NASDAQ exchange. As of 03:59, quotes have adjusted to $249.05 per paper, which is 22% lower than the closing level on Wednesday, February 2. The capitalization of the company may decrease by $175 billion if investors do not buy out the failure before the main session.
Meta Platforms' securities faced a sell—off after the company's disappointing fourth-quarter report - the first after the company's rebranding and reorientation to the metaverse. Net profit fell by 8% to $10.28 billion. Earnings per share fell 5% to $3.67 versus the expected $3.84, according to a Refinitiv survey. Revenue was higher than expected, increasing by 20% to $33.67 billion. Analysts had forecast $33.4 billion.
For the first time, the company disclosed separately the financial results of the Reality Labs division, which invests in the metaverse and virtual reality, reporting operating losses of $3.3 billion.
Investors were also concerned about the disappointing forecast of the technology giant: revenue in the first quarter is expected to be between $27 and $29 billion, while analysts expected this figure to reach $30.15 billion, CNBC reports. Growth will range from 3% to 11%, which could be the slowest quarterly growth in the company's history.
CEO Mark Zuckerberg said the company is investing heavily in the Reels short video platform and is focused on attracting younger users, although this segment is "monetized at lower rates," the Wall Street Journal reports.
According to Meta Platforms, revenue growth in the first quarter will slow down due to the impact of inflation, disruptions in the supply chains of advertisers, as well as changes in ad targeting that Apple introduced in 2021. They will cost about $10 billion in 2022, Bloomberg points to the words of CFO David Fechner.
The collapse of Meta Platforms quotes hit shares of other social networks, CNBC reports. Snap shares fell more than 18% in postmarket trading. Pinterest quotes fell by almost 10%, Twitter shares lost about 8%. But the impact wasn't limited to social media. Shares of Amazon, which has a growing advertising business, fell by more than 3%. Amazon will report results on Thursday.
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