Notícia

Meta Chief Operating Officer Sheryl Sandberg said she hoped to focus on “philanthropic work” after leaving Facebook’s parent company this fall. Sandberg is pictured during a Senate Intelligence Committee hearing in Washington, D.C., on September 5, 2018. The one saving grace for Facebook could be continued support from advertisers.

META is currently trading at $184.00, a number approaching the stock’s all-time-low of $174.95 reached late April. The rebrand did not bring about any immediate change in fortune for the social media giant’s beleaguered stock. The stock has been under pressure since its last earnings report in February, when the company missed user number expectations and warned of increased competition from video apps like TikTok. In the recent past, both companies appeared to have unstoppable growth and impenetrable moats.

Disney attributed much of the revenue growth to increased guest spending and attendance at its domestic parks. Disney’s stock price was around $105 at the close of trading on May 13, according to Yahoo Finance. According to CNNBusiness, 44 analysts have a median 12 month price target of $425 — up about 30% from where its stock closed on October 4. Facebook is deeply embedded in the operations of businesses around the world. A Columbian snack maker takes orders for empanadas via WhatsApp — the outage cost it a day’s worth of sales. Some newspapers in Mexico which can’t afford to print were unable to “publish” since Facebook was down.

Why Facebook Stock Dropped Again Today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Apple and TikTok are leading to decreased ad revenue and users for the social media giant. Meta management has compared its current transition to Reels monetization to earlier successful content transitions, like the shift to Stories and mobile. User growth has run out of steam amid growing competition, while privacy changes have undercut its display advertising dominance. At the same time, Meta is still spending a lot to position for metaverse potential that may not come to fruition for years.

But the stock didn’t fall off a cliff until Chief Financial Officer David Wehner disclosed that the social-media giant expects the revenue-growth slowdown to continue. Facebook stock had recovered from a decline earlier this year in the wake of the Cambridge Analytica scandal, one of several controversies and warning signs that the company had managed to weather with little damage to its stock. But declining revenue and user growth, topped by a warning from executives that it will continue, seemed to end that run. Before Thursday, the largest single-day decline in market value was recorded by Apple, which shrank by $180 billion in September 2020, according to Bloomberg News. Microsoft’s market cap shed $178 billion in March 2020, making it the biggest loss following Apple, the news company said.

The warning from Snap altogether erased nearly $200 billion in combined market value for these social media and digital advertising companies. Facebook stock has been on a tear in 2021, reaching a $1 trillion market cap in early July, though the share price has stalled in recent months with the market cap currently resting just south of $920 billion. We can see why both Meta Platforms and Netflix have underperformed equity markets in the last 12-months.

“10.1 million people canceled their Disney+ subscription. Everything woke goes broke.” But some wonder if Snap is a true economic bellwether that makes sense to extrapolate their warning to the broader economy, as the company only does about $5 billion in annual revenue. On the flip side, JPMorgan’s Jamie Dimon, CEO of America’s largest bank, told investors yesterday that while there are storm clouds hovering over the economy, they may dissipate before they turn into a hurricane. As Forbes reported, for the second quarter of 2021, Facebook reported a 56% increase in revenue to $29 billion — 4.3% more than analyst expectations. Net income for the quarter of about $10.4 billion was up about 100%.

Bloomberg Daybreak Asia

Year-to-date, NFLX has declined -66.83%, versus a -10.22% rise in the benchmark S&P 500 index during the same period. In the last decade, FAANG stocks gained massive momentum on the back of strong growth, lower interest rates, and a spectacular bull run that accompanied equity markets. Shares of Facebook parent Meta Platforms Inc. plunged Thursday, wiping about $232 billion from the technology giant’s market value, the biggest one-day decline for a stock in U.S. history. Meta reports its Q1 results on Wednesday, April 27 and long-term investors might want to think about buying.

Shares of Snap were down more than 23% Thursday prior to its earnings report after the bell. Pinterest shares lost more than 10% and Twitter shares were off more than 5%. Snap’s second-quarter earnings warning rippled through a number of social media and digital advertising stocks, as investors grow increasingly worried about a slowdown in the economy and the sale of consumer goods. Since its inception, Facebook’s user growth has essentially been up and to the right.

Shares of streaming giant Spotify also fall after disappointing subscriber outlook

If Facebook can report faster than expected growth and raise its guidance when it reports third quarter results later this month, its stock should rise. As I wrote in July, that’s “where instead of just viewing content — you are in it. It’s going to be accessible across all of our different computing platforms — VR and AR, but also PC, and also mobile devices and game consoles,” according to Zuckerberg.

Management anticipates revenue of $31.5 billion to $34 billion in the fourth quarter, while analysts’ forecasts had called for $34.8 billion in sales. Facebook’s monthly active users of 2.91 billion and average revenue per user of $10 also fell short of consensus estimates of 2.93 billion and $10.15. Facebook’s revenue jumped 33% year over year to $29 billion, driven by continued growth in its core digital ad business.

The tech market has plunged since its peak in November, and Netflix and Facebook have been hit particularly hard. The company blamed privacy changes to Apple’s iOS and macroeconomic challenges weighing on advertiser budgets.

Facebook stock falls as global outage continues

T-Mobile US Inc. shares are surging after posting better-than-expected earnings, and predicted strong results for the rest of the year. The mobile phone company added 1.8 million customers in the fourth quarter. The S&P 500 lost 1.5% and the Dow dropped less than one percent, the losses breaking a 4-day winning streak. Markets had ended higher yesterday, supported by upbeat earnings from Google parentAlphabet Inc. and chip companyAdvanced Micro Devices Inc. In Q1, Meta’s Reality Labs division, focused on growing the metaverse via augmented- and virtual-reality headsets and software, lost $2.96 billion in the quarter on revenue of $695 million.

Facebook has significant public and government relations problems as well. As the New York Times reported, the Federal Trade Commission has filed an antitrust lawsuit against Facebook accusing it of using its acquisitions of Instagram and WhatsApp to secure a monopoly. When I brought up the shutdown with my Strategic Decision Making students, most of them shared their painful withdrawal feelings due to their inability to access Instagram. When contacted for comment, Facebook directed Newsweek to Zuckerberg’s post praising his “good friend and partner” for helping his company and “the world.”

But the sell-off has meant FB stock is valued at a price to sales multiple of 4.7x while Netflix is valued at less than three times forward sales. Comparatively, FB is trading at a price to earnings multiple of 18.6x while this ratio for NFLX stock is similar at 18.7x. Shares of FAANG stocks such as Netflix and Meta Platforms are trading significantly lower compared to all-time highs.

Facebook tends to make its users “angrier” through the widespread dissemination of riveting content. Meta Platforms Inc.’s one-day crash now ranks as the worst in stock-market history. Industry life cycle analysis is part of the fundamental analysis scalping technique of a company involving examination of the stage an industry is in at a given point in time. Later today, the Commerce Department is expected to report that U.S. factory orders edged 0.2% lower in December following a 1.6% gain in November.

Less subject to the quarterly demands of investors, advertisers aren’t yet seen as planning to ease back on Facebook budgets. Chief Operating Officer Sheryl Sandberg said on the call that the GDPR has not affected the company’s top line. While Meta is a much larger player, I believe Netflix’s lower valuation will provide investors with significant upside potential, making the streaming heavyweight a better investment today. Netflix also hinted it might consider an ad-supported model and further monetize accounts that are sharing passwords to boost revenue.

Share All sharing options for: Facebook lost daily users for the first time ever last quarter

Apple now requires users to give permission for companies such as Meta to gather data about them as they browse across the web. Unsurprisingly, users have said no thanks and it has made its ad targeting less effective. Metaverse is the concept of fxprimus review an immersive collection of digital spaces and worlds navigated by internet users via 3D avatars. Many developers, including Zuckerberg, believe the metaverse will become the future hub of work, shopping, entertainment, and social interaction.

In February, Meta announced the release of two ad formats for Reels that are semitransparent so as not to interfere with the video content. Meta is offering revenue sharing to Reels creators to place the ads. Morgan Stanley’s Brian Nowak figures creators will get 55% of the revenue for ads they place. With best stock advisor websites so much uncertainty, investors should monitor Meta stock’s chart for a sign that the company has really turned the corner. Netflix is down nearly 68% since the Nasdaq peak on November 19, while Facebook has lost over 45% of its value since then and is down more than 50% from its high two months earlier.

Facebook Shares Hammered on Outlook, Driving Markets Lower

FB stock tumbled following the announcement that came alongside its Q4 financial release in early February. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Average revenue per unit measures the amount of money that a company earns for each customer. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. “Our hope is that within the next decade, the metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce, and support jobs for millions of creators and developers.” Facebook’s Oct. 28 name change to Meta Platforms made sense for multiple reasons.

Numerous Wall Street analysts still have 300+ price targets for Meta stock, which officially changed its ticker to META from FB as of June 9. Yet the list of concerns plaguing the stock seems to be growing, not shrinking, with the rising risk of a recession potentially compounding or extending the current slowdown in e-commerce spending. Meta, which also owns Instagram and WhatsApp, saidrecent changes with Apple’s iOS software for iPhones had hurt the business.

The analysts said Meta “is seeing a significant slowdown in advertising growth while embarking on an expensive, uncertain, multiyear transition to the Metaverse.” The company, which released earnings under its new name for the first time with a new reporting structure, missed earnings estimates for the fourth quarter at $3.67 vs. $3.84 analysts were expecting, according to Refinitiv. But it beat on revenue for the quarter, at $33.67 billion vs. $33.4 billion estimated.

“Disney stock is down more than 70% and attendance is down more than 55%! Snap’s warning ultimately could ring true for its peers and the types of goods that are typically advertised on its platform, but that doesn’t mean the consumer is entering a significant period of weakness. Getty Images Facebook FB has suffered a bad few weeks in the spotlight which have contributed to a 15% drop from the all-time high its stock hit last month. Meta’s Chief Growth Officer Javier Olivan is expected to take over the chief operating officer role after Sandberg’s exit is completed. Zuckerberg blamed the drop in users to mounting competition from rivals such as TikTok.

Shares of Facebook parent Meta plunged Thursday after the company forecasted weaker-than-expected revenue growth in the next quarter. Forecast sales of $29 billion for Q2, which is similar to the year-ago period. Due to sluggish revenue growth, Meta will clamp down on operating expenses and forecast spending to reduce to $89.5 billion this year, compared to its earlier guidance of $92.5 billion. Increased sales by 7% year over year which was the slowest ever rate of growth. Comparatively, in Q1 of 2021, FB sales grew by more than 47% year over year.

Alongside its valuation, Meta boasts a stellar balance sheet, with no long-term debt and $48 billion in cash and equivalents. This provides FB ample options to expand into the metaverse and other future growth areas. The company could also eventually start paying a dividend, as many maturing tech giants eventually do. Sank 3.9% on Tuesday, following the release of the social media giant’s third-quarter results. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.