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Meta stock loss8/26/2023 ![]() “The progress we’re making on our AI discovery engine and Reels are major drivers of this. Facebook just reached the milestone of two billion daily actives,” said Mark Zuckerberg, Meta CEO, in a statement. “Our community continues to grow and I’m pleased with the strong engagement across our apps. Meta beat expectations on ad revenue ($31.25 billion versus $30.86 billion expected), Facebook daily active users (2 billion versus 1.98 billion expected) and family of apps daily active users (2.96 billion versus 2.92 billion expected).įacebook itself had two billion daily active users, up 4% from a year earlier. So the company missed on net income but exceeded expectations on revenues. Analysts expected the company to report earnings per share of $2.22 on revenue of $31.53 billion. In after-hours trading, Meta’s stock price is up 17.75% to $180.30 a share. Monthly active users hit 3.74 billion on December 31, up 4% from a year earlier. Meta’s (overall family of apps) daily active users were 2.96 billion on average for December, an increase of 5% from a year earlier. Overall net income was $4.652 billion ($1.76 a share) on revenue of $32.165 billion in Q4, compared with net income of $10.285 billion ($3.67 a share) on revenue of $33.671 billion a year earlier. “2022 was a challenging year, but” the company made headway in finding its way forward, said Mark Zuckerberg, CEO of Meta, in an analyst call. The company is shifting to a new datacenter architecture that will be able to handle AI and non-AI tasks at the same time. The charge brought down overall earnings. Another $1 billion in restructuring costs will come in 2023. ![]() Meta also took a $4.2 billion restructuring charge for the fourth quarter related to the early termination of some office-space leases, redesigns of datacenter projects, and severance for employees laid off in Q4. Still, he noted that both Reality Labs and the rest of Meta would still focus on being more efficient. ![]() “The software and social platform might be the most critical part of what we’re doing,” Zuckerberg said. Those areas include new computing platforms, glasses and software. The investment is happening in the Meta Quest 3 family for consumers, the Meta Quest Pro for enterprises, and other long-term areas that aren’t being described yet. It views the division as a long-term investment. The company still expects Reality Labs losses to continue in 2023 and be even bigger than the current quarter’s operating loss. The company signaled some bad news (at least for VR software companies) in Q2 2022 when it said it would raise the prices for its Meta Quest 2 VR headsets by $100 each. Meta has started breaking out its results from its Reality Labs division (formerly known as Facebook’s Oculus division) to give investors a sense of how much it is investing in the next version of the internet, or the metaverse, the universe of virtual worlds that are all interconnected, like in novels such as Snow Crash and Ready Player One. ![]() During the quarter, Meta also launched the Meta Quest Pro, an enterprise high-end version of its headset, for $1,500. It’s worth noting this was the first holiday-selling season since Meta increased the base price of its Oculus Quest 2 headsets by $100 to $400 back in August 2022. Revenues for the VR division were $727 million in Q4, down from $877 million a year ago.
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