Meta’s Shares Jump 17%+ After Beating Expectations, Metaverse Down $13.72B

Refer Friends. Earn Crypto Together.

After Meta published its report covering both Q4 and the entire 2022, its shares spiked more than 17%. However, the company also revealed its Metaverse division lost $13.72 billion throughout the previous year.

Meta’s Shares Soar 17% After Q4 Report is Published

On Wednesday, February 1st, Meta published its earnings report covering the fourth quarter of the previous year, as well as the entirety of 2022. Despite facing increased hardships throughout the previous year and laying off 11,000 employees last November, the company managed to beat most estimates.

Mark Zuckerberg’s firm reported $32.17 billion in revenue while $31.53 billion was generally expected, and $1.76 earnings per share. The company also had 2 billion daily active users (DAUs) instead of the 1.99 billion expected, and $10.83 average revenue per user instead of the forecast $10.63.

The news caused the company’s shares to soar in after-hours trading by more than 17% reaching $180 as opposed to $153.12 at the close. Meta’s report also sent Google and Pinterest’s stock up—both by around 4%. A day earlier, Snap’s report sent these same stocks into the red after revealing worse-than-anticipated performance.

Since these companies operate in a similar field and publish their earnings reports in close proximity, they often have an impact on one another. Generally, Snap’s effect is the most pronounced as it comes out first.

Reality Labs Down Nearly $14 Billion in 2022

While Meta’s overall performance in the fourth quarter was better than expected. the company’s metaverse division—Reality Labs—reported a massive loss. According to the report, the division was down $4.28 billion in Q4 alone, bringing its yearly total to a loss of $13.72 billion.

While Reality Labs’ losses are immense, they perhaps are not out of line with the overall expectations. In fact, already in 2021, Meta revealed that it expects the world is around 15 years away from a fully-fledged metaverse and the firm seemingly doubled down on its vision for the future as it finally changed its ticker to META last June.

Furthermore, interesting and exciting news about auditions to the wider metaverse have been steadily incoming. For example, the famous pet food maker Pedigree unveiled a metaverse initiative aimed at boosting dog adoption called the Fosterverse earlier in January.


Показать больше

Добавить комментарий

Кнопка «Наверх»