Meta Failed to Impress Investors and Analysts

<div><img width="1200" height="800" src="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/table-screen-wooden-page-media-zuckerberg-1-1.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Facebook and its results" loading="lazy" srcset="https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/table-screen-wooden-page-media-zuckerberg-1-1.jpg 1200w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/table-screen-wooden-page-media-zuckerberg-1-1-300×200.jpg 300w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/table-screen-wooden-page-media-zuckerberg-1-1-1024×683.jpg 1024w, https://6ztkp25f.tinifycdn.com/wp-content/uploads/2022/02/table-screen-wooden-page-media-zuckerberg-1-1-768×512.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></div><h1><span>Meta Failed to Impress Investors and Analysts </span></h1>
<p><span>Facebook’s parent company Meta failed to meet <a href="https://www.financebrokerage.com/googles-parent-company-alphabet-surpassed-expectations/" target="_blank" rel="noopener">expectations</a>. Its shares dropped more than 20% in extended trading on Wednesday, after Meta reported disappointing earnings, gave weak guidance, and said user growth has stagnated.</span></p>
<p><span>Meta issued disappointing guidance for the first quarter of the year in addition to coming up short on its fourth-quarter profit and user numbers. </span></p>
<p><span>The tech giant said revenue in the first quarter would be $27 billion to $29 billion. Meanwhile, analysts were expecting sales of $30.15 billion. </span></p>
<h2><span>Meta and its issues </span></h2>
<p><span>A combination of factors, including privacy changes to Apple’s iOS, affected Meta. The company blamed the lower-than-expected growth partly on inflation and supply chain issues impacting advertisers’ budgets. </span></p>
<p><span>Importantly, there’s also a shift to products that don’t generate as much revenue as its core news feed. For instance, users are spending more time on its Reels videos.</span></p>
<p><span>The report is unique for one very interesting reason. It is the <a href="https://www.financebrokerage.com/investors-are-monitoring-tech-companies-and-their-results/" target="_blank" rel="noopener">company’s </a></span><span>first report since changing the name of its parent company to Meta, which is a nod to the metaverse. The company’s CEO  announced its name change in October of 2021, following a number of troubling reports about Facebook. </span></p>
<p><span>Besides, with the name change to Meta comes a new reporting structure. The social media giant mentioned one very interesting detail in its last earnings report. It will break out its hardware division, Facebook Reality Labs, into a separate division. The company’s core business will be Facebook’s Family of Apps (FoA), including Instagram, Messenger, and WhatsApp. </span></p>
<p><span>Interestingly, its Family of Apps saw revenue of $32.79 billion with an operating income of $15.89 billion in the fourth quarter. The company’s Reality Labs segment made $877 million in revenue in the quarter, with an operating loss of $3.3 billion. </span></p>
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