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Meta shares drop 20% on Q4 earnings miss, weak outlook

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Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#91

Post by [deleted] »

Terr_ wrote: post #54
pavlov wrote: post #7

Earlier quoted context omitted.

People spend more time on an app where they feel comfortable. If FB did nothing to clean up feeds, it would probably drive away both those eyeballs and the advertisers who don't necessarily want their brand to be displayed next to unfiltered user-generated content.

One might argue FB is trying to "clean up" a problem that it caused/promoted in the first place. Over time they've changed the "feeds" to work on principles that are good for advertisers, "influencers", and viral shit in general... at the expense of regular human contact and normal trusted social circles.

[deleted]

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#92

Post by jiveturkey »

distrill wrote: post #76
gzer0 wrote: post #59

Here are the results that caused this: - Earnings per share: $3.67 vs $3.84 expected - Revenue: $33.67 billion vs $33.4 billion expected Facebook also missed estimates with user numbers. - Daily Active Users (DAUs): 1.93 billion vs 1.95 billion expected - Monthly Active Users (MAUs): 2.91 billion vs 2.95 billion expected - Average Revenue per User (ARPU): $11.57 vs $11.38 expected Future guidance was the biggest miss…

It's so confusing to me see headlines calling this a "huge earnings miss". Revenue was greater than expected, as was ARPU. I get that the users are under, but this seems pretty far from a huge miss, no?

earnings != revenue

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#93

Post by JCM9 »

Facebook’s core business model appears to be in decline. They don’t have a very diversified revenue stream despite trying various side businesses. This is the market worried that Facebook’s best days are behind it.

Facebook is betting the farm on the metaverse stuff but without meaningful financial results that’s not going to placate market concerns over what looks like a downhill future for the core businesses. Facebook’s less than fantastic record at making money on its other businesses doesn’t have the market terribly optimistic about about the future prospects metaverse stuff either. Net net stock down 20%.

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#94

Post by gxs »

magicjosh wrote: post #74
nappy-doo wrote: post #42

The vitriol on HN for FB is something else. The earnings for this company are truly staggering. They made 11$/user. Their earnings were up 34% year-over-year – on a base of 29B dollars. They made 10B more this year than they did last year, and the comments in here are all about, "boy Apple fucked them, and Meta suxor!" You people are nuts. While I don't love FB as an entity, as a business they are making fucking bank…

This is a tech community, not a "making bank" community. You may be looking for a subreddit on investing for the reactions you're expecting.

This is literally an article and comment about Facebook's finances.

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#95

Post by analogdreams »

mcintyre1994 wrote: post #56
analogdreams wrote: post #18

Earlier quoted context omitted.

don't follow content that makes you uncomfortable. seems like an easy fix any user can implement on their own.

I don't use the main FB app but when I have before it'd constantly show me stuff from pages/people/whatever that I didn't follow. I think it was mostly friends of friends, or stuff friends liked. Have they got rid of all of that now?

i just logged in to my account (i look about once a week) and everything i see that is not an ad is something i actively opted into or was shared by someone i chose to follow/friend.

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#96

Post by dmurray »

gzer0 wrote: post #59

Here are the results that caused this: - Earnings per share: $3.67 vs $3.84 expected - Revenue: $33.67 billion vs $33.4 billion expected Facebook also missed estimates with user numbers. - Daily Active Users (DAUs): 1.93 billion vs 1.95 billion expected - Monthly Active Users (MAUs): 2.91 billion vs 2.95 billion expected - Average Revenue per User (ARPU): $11.57 vs $11.38 expected Future guidance was the biggest miss…

It's not really plausible that the market can predict Facebook's earnings to within 5% and that such a small miss would cause a rational investor to value Facebook 20% lower.

This seems more like a symptom of the market being generally skittish, with a small side of "expected" earnings actually being a low-biased estimate, so it's more like a 10% miss.

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#98

Post by intrepidsoldier »

dekhn wrote: post #87
intrepidsoldier wrote: post #71

The data center infrastructure that Facebook (Meta) has is probably in the top 5 in this world (behind only Amazon, Microsoft, Google). They might want to become a cloud infrastructure provider for some side money and buy themselves some time to figure out this Metaverse fantasy :) Hey, AWS started because Amazon wanted to lease out their spare infrastructure capacity.

in the world? ali baba would like to have a word

Ah yes. Fair point.

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#99

Post by spankalee »

WalterBright wrote: post #78
omot wrote: post #50

Earlier quoted context omitted.

Invisible hand? Yeah maybe when you're early-stage Capitalism, in late-stage it's all about the invisible knife.

This is ironic considering that Apple displaced the former unstoppable phone monopoly. Never mind that Walmart displaced the former unstoppable Sears monopoly, and Amazon did the same to Walmart. IBM which people predicted was unstoppable, was going to rule the world. IBM's descent into irrelevance (I B What?) has been profound. The only interesting thing is people still insist that this time it's gonna be different.

Which phone monopoly?

Re: Meta shares drop 20% on Q4 earnings miss, weak outlook

#100

Post by pebble »

stu2b50 wrote: post #83
ohashi wrote: post #58

Earlier quoted context omitted.

We can't be critical of a company that makes people miserable? That weakens democracy? That enables violence and hate? Just because they make a lot of money we should be cheering? Oh wow, they made $11! Let's forget everything else.

There’s a difference between hating Meta for its ethics and hating Meta as a money making machine. People are doing the latter and that’s pretty silly. Meta is, however unethically, a good entity at the goal of making money.

They do the latter by compromising on the former.
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