Meta (Facebook, Whatsapp, Instagram) went viral in the stock market after its results

ID padsmatrix Facebook, Instagram and WhatsApp, he published accounts that surprised analysts. All this despite a 21% decrease in net profit compared to the same period in the previous year to $7,465 million. However, expectations were so low that earnings of $2.72 per share were enough to beat the expected $2.52 per share.

The actions of the social network he founded Mark Zuckerbergg you have up over 14% in the “after-hours” market, It comes to $200, to the tech company’s surprise numbers. That’s yes, IThe company’s revenue amounted to $27,910 million, Compared to the 28,200 forecast by market consensus. In fact, sales increased 7% on a quarterly basis, This is the first time in 10 years that growth has reached number one since listing.

But, The positive part is found in active users of social networks, which is down from 1960 million from the projected 1950 million; Despite the fact that in monthly terms (MAU’sYes, there was a drop in terms of predictions: 2,940 million compared to the expected 2,970 million active users.

This quarter we made progress on a number of key business priorities We remain confident in the opportunities and long-term growth that will unlock our product roadmap.” Mark ZuckerbergFounder and CEO of Meta Corporation. “Today more people are using our services than ever before, And I am proud of the way our products serve people around the world,” he adds.

ratan the future

The results for the first quarter of the year are based on previous calculations that were a real disaster. Among other things, Meta released a future forecast that was much lower than expectations On Wall Street, the management team revealed that revenue growth has slowed dramatically due to Apple’s new privacy rules that make it difficult to estimate advertising and measure advertising effectiveness.

As the company previously mentioned the challenges of competition with it tik tok In the short video market. The consensus also remains concerned about the general state of the digital advertising industry. In Europe, there were signs of softening as a result of the tension resulting from the Russian invasion of Ukraine, at the same time that supply chains remained under pressure, Inflation is high and concerns are growing about a possible economic slowdown later in the same year. And while it’s still early days to expect a lot of good news, investors are looking to future earnings reports to justify the company’s massive investment in the metaverse.

Evercore ISI Analyst, Mark Mahani, asserts in an analytical note that he expects the company’s journey to carry a significant risk going forward and for this reason suggests caution. Mahani says that taking results Explode, Explode turns out that The impact of the war in Ukraine on the advertising market is ‘very real’It affects both brands and direct response ads. It also indicates that “Exchange rate headwinds have strengthened in the past two months“.

“Butthe biggest issue will likely remain how the company will respond to the challenges posed by Apple’s policy change.” Mahani adds: “A key focus in Meta remains the company’s ability to develop, test, and deploy a post-privacy ad attribution model, and our analyzes indicate that this is likely to evolve by 2023.” However, it is He maintains his recommendation about Stocks that will outperform the market with a $350 price target.

for this part, Brad Ericson, an analyst at RBC Capital wrote in a report that half of the advertisers I spoke to in a recent round of channel checks were still cutting their Facebook spending. Some investors believe that the lower part of the expectations range gives the management team Margin of a certain work for the future.

“Leave the numbers aside, we think so Meta will try to set the recovery tone… While we are also trying to give investors perspective to improve Reels’ monetization and a consistent perspective on its position in terms of user privacy and the metaverse,” he says. Ericsson also expects upcoming comments on challenges such as weakness in Europe and a slowdown in ad campaign launches, After Russia invaded Ukraine, They say both factors could have an “increasing weight” on the company’s advertising business.

Leave a Comment