Facebook Parent Meta Q4 Earnings Results – Stock Sinks 20% After Hours
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- Meta Platforms Inc. reported weak guidance and multiple tailwinds to growth, higher costs
- The stock price sank more than 20% in after-hours trading as investors digested the report
- Earnings per share (EPS) crossed the wires at $3.67 on 33.6 billion in revenue
Meta Platforms Inc., the parent company of Facebook, reported fourth-quarter corporate earnings results this afternoon, posting weak guidance and an EPS miss, sending share prices lower in after-hours trading. The tech giant saw Q4 earnings per share (EPS) of $3.67 versus an expected $3.84, per Bloomberg estimates. Q4 revenues came across the wires at $33.6 billion, beating an expected $33.43 billion.
This was the first report released since the company changed its name to Meta, in a move that aims to posture the company towards its endeavor into the metaverse. The Facebook Reality Labs division – made up of its virtual and augmented reality business -- reported a $3.30 billion loss in revenues. For the time being, investors are more focused on the company’s weak guidance and higher costs outlook, however.
Facebook’s monthly active users came across at 2.91 billion, under the 2.95 billion estimate. Meta’s share price sank over 20% after-hours, which contrasts to bullish activity in Alphabet. Inc’s stock price on Tuesday. The Nasdaq is up on the month following January’s sharp drop, but if the bearish price action extends into tomorrow’s trading, it could drag down the entire tech sector.
- Sees Q1 Revenue $27 billion to $29 billion, under $30.25 billion estimate
- Apple’s IOS changes will drag on growth
- Ticker symbol to change to META in first half of this year
Meta ($FB) - 3-Minute Chart/Daily Chart
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--- Written by Thomas Westwater, Analyst for DailyFX.com
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