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 United States regulators after the damning allegations that emerged from its whistleblower crisis last year. It is essential to note Meta is still massive and growing on the whole – as 2021 closed, 2.8 billion people used one of its four platforms and messenger services at least once a day, and 3.6 billion at least once a month.
"If the company is not growing, then it's a complete reset for investors," he added. "It's the first time the user base is shrinking," said analyst Adam Sarhan from 50 Park Investment. Investors also recoiled at Facebook's report of losing roughly 1 million daily users globally between the last two quarters of 2021 – a fraction of the total but a potential signal of stagnation. On the financial side, Meta reported a turnover of $33.67 billion, in line with its forecasts, but it made $10.3 billion in net profit in the fourth quarter, 8% less than last year. It also reported a rare decline in profit due to a sharp increase in expenses as it invests in transforming itself into a virtual reality-based company.Īhead of results, analysts expected 1.95 billion daily active users on Facebook, but Meta reported 1.93 billion – a key indicator for where the platform is headed. Meta sank after forecasting revenue well below analysts’ expectations for the current quarter, a disappointment for a company that investors have become accustomed to delivering spectacular growth. The Dow Jones Industrial Average, which does not include Meta Platforms, fell 278 points, or 0.8%, to 35,351. Meta's stock plunged 26.4%, erasing more than $230 billion in market value – comparable to the size of New Zealand's economy – the largest drop in history, after its results raised doubts about the troubled social media giant's future.īecause Meta is valued so highly, a big swing in its stock price can also sink or lift broader market indexes. The Wall Street benchmarks slumped on Thursday as Facebook parent company Meta's stock marked a record one-day plunge following a disappointing earnings forecast that shook the global tech landscape.
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