Meta shares fell over 20% in one day after the official earnings announcement for the third quarter of 2022. Despite the increase in daily active users within the group’s applications, quarterly turnover went below expectations, declining 4% year-on-year. On the other hand, costs grew as much as 19%. Earnings per share are $1.64, while analysts had expected $1.93. The share price now hovers around $100, down over 60% from the highest price of $353 from November 2021
Data
- An increase in daily active group users of 4% compared to last year
- The number of ad impressions increased by 17% and the average ad price fell 18%
- Turnover in the third quarter was $27 billion, down 4% year-on-year
- Costs were $22 billion, a 19% increase over the same period.
- The number of employees increased by 28% to 87,314 people
Commentary and expectations of Mark Zuckerberg
Ceo Mark Zuckerberg also commented on the results on his Facebook page. According to him, the total number of users of all Meta’s applications is growing and reaches as much as 3.7 billion. He says the number of active and everyday Facebook users is higher than ever. He agreed that the company’s turnover is below expectations but expects a healthier growth trend next year. He states that the primary areas of investment are currently the AI discovery engine powered by Facebook Reels and similar content recommendation systems, advertising and direct communication platforms, and a vision of the metaverse. He cites a 50% increase in the number of Facebook Reels views and an increase in the share of such content compared to the main competing Tik-Tok.
As for the metaverse and the new Quest Pro device, Mark expects that in a few years, Quest Pro will replace everyday desktops and allow people to work in virtual or augmented reality.
Despite the collaboration they announced, Phil Spencer, CEO of Microsoft, in his speech at the WSJ Tech Live Conference described Meta’s Metaverse as a poorly crafted video game
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