Yesterday, when Meta released its fourth-quarter results for the fourth quarter of 2021 after the US session closed, its share price fell 22% to $251.40 in OTC trading. Thus, Mark Zuckerberg lost $24 billion in just a few hours.

The reason is investor disappointment as earnings in recent months and expectations for the first quarter of 2022 turned out to be so, according to Reuters.

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Revenue in the fourth quarter was $33.67 billion. Compared to US$28.07 billion in the previous year (an increase of 20%). Revenue is just above Wall Street analysts’ estimates of $33.4 billion.

Net profit was $10.28 billion. for $11.22 billion. A year ago, a decrease of 8%. Earnings per share were $3.67. for $3.88 a year ago. Analysts had expected earnings per share to rise to $3.84.

For the first time in history, the global daily active users of Facebook (DAUs) fell to 1.929 billion from 1.930 billion (compared to the previous quarter). Meanwhile, Wall Street analysts had expected a result of 1.95 billion. The average number of monthly users also fell to the level of 2.91 billion users. Analysts’ estimates were around 2.95 billion.

The US company’s expectations for the next quarter were also lower than expected by analysts. Meta expects revenue to be between $27 billion and $29 billion. The consensus was assuming revenue at $30.15 billion.

Meta forecasts pointed to changes in Apple’s privacy (making it difficult for brands to target and measure their ad campaigns on Facebook) and increased competition for users from competitors like TikTok to justify the decline. He also mentioned macroeconomic issues such as supply chain disruptions.

Other social media companies have also posted disappointing results: Twitter, Pinterest and Spotify.

Source: Reuters