Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Meta Earnings Eyed as Tech Stocks Plummet - Will Facebook Get the Netflix Treatment

Meta Earnings Eyed as Tech Stocks Plummet - Will Facebook Get the Netflix Treatment

Diego Colman, Contributing Strategist
What's on this page


  • Meta Platforms, Facebook’s parent company, will announce quarterly results on Wednesday after the closing bell
  • Analysts expect earnings per share of $2.58 on revenue of $28.28 billion
  • If earnings and corporate guidance disappoints expectations, Netflix’s tragic fate could befall Facebook

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

Most read: S&P 500 and Nasdaq 100 Outlook - A Retest of Yearly Lows Appears Likely

Meta Platforms (FB) stock prices have plummeted from their September 2021 highs, falling more than 50% from those levels, pressured by slowing growth in the business, privacy changes to Apple’s iOS, stronger competition, doubts about the metaverse venture and broad-based tech sector weakness amid rising interest rates and soaring inflation. The sell-off, however, picked up pace in early February after the company posted worse than anticipated Q4 2021 earnings, recorded its first-ever drop in daily user numbers and offered disappointing forward-looking commentary.

Meta will have a chance to redeem itself on Wednesday after the closing bell when it announces its Q1 2022 results. Investors expect earnings per share of $2.58 on revenue of $28.28 billion, but many analysts warn performance could underwhelm forecasts for the following reasons:

  1. Young people, Meta’s most lucrative advertising demographic, continue to leave Facebook and Instagram in droves, opting for more engaging video apps like TikTok
  2. Daily active users could trend lower as people begin to spend less time on social media platforms, with the global economy recovering from the pandemic and mobility rebounding sharply
  3. Meta has been struggling to monetize Reels videos (the product generates less revenue than Feeds and Stories)
  4. Metaverse, which faces a long road to profitability, is sucking away resources from the company’s bread and butter: Facebook and Instagram
  5. Apple and Google's pivot to stricter consumer privacy measures creates headwinds for ad pricing growth

Source: EarningsWhispers

Equities Forecast
Equities Forecast
Recommended by Diego Colman
Get Your Free Equities Forecast
Get My Guide


Traders should pay attention to advertisement revenue growth and outlook commentary, but more importantly daily active users’ numbers. In Q4 2021, Facebook's DAUs stood at 1.929 billion, up 5% year-over-year, but down 0.1% quarter-over-quarter. The markets did not like this sequential decline and the stock price plunged more than 25% the day after the company released its financial statements with this information.

Looking ahead, if DAUs do not stabilize and retreat more than expected in the wake of Russia's decision to ban Meta products in the country, FB stocks could suffer, rivaling the Netflix selloff last week, when the streaming service's shares sank more than 35% after announcing a loss of 200,000 subscribers and issuing weak guidance.

For a long time, tech darlings have commanded higher valuation multiples than the broader market due to expectations that they could continue to deliver strong earnings growth to shareholders regardless of the economic environment, but if their fortunes begin to change, investors may think twice about paying a premium to own their stocks.


Facebook price chart


  • Are you just getting started? Download the beginners’ guide for FX traders
  • Would you like to know more about your trading personality? Take the DailyFX quiz and find out
  • IG's client positioning data provides valuable information on market sentiment. Get your free guide on how to use this powerful trading indicator here.

---Written by Diego Colman, Contributor

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.