![]() said it’s difficult to know where to start when considering Meta’s recent moves. Earlier this week, Altimeter Capital Chair and Chief Executive Brad Gerstner – one of the biggest shareholders in Meta – penned an open letter to Zuckerberg, criticizing him for devoting too many staff and too much money on the metaverse, while also calling for increased job cuts and a reduction in expenses.Ĭharles King of Pund-IT Inc. That warning is likely to add to the agitation of investors, many of whom have announced their displeasure with Meta’s focus on the metaverse. Those losses are likely to accelerate significantly over the next year, the company added. Meta’s pursuit of the metaverse has been a big drain on the company’s resources, and today it reported that its virtual reality and augmented reality business division lost $3.67 billion during the quarter. Whatever those high priority projects are, it’s likely that many will be focused on the metaverse, which represents Meta’s long-term bet on the idea of virtual worlds where people can come together to work, play and socialize. Only those teams working on Meta’s “highest priorities” would be allowed to grow their worker numbers, the CEO said on a call. Today, he added that some teams will remain the same size, while others will shrink. Zuckerberg said three months ago that the company is planning to “steadily reduce” its staff headcount growth over the next year, and about a month later he officially announced a hiring freeze. That came after the stock fell 5% in the regular trading session.Īs Meta braces itself for an economic downturn, it has been looking for ways to cut costs. ![]() Meta’s stock crashed in the hours after the report was published, losing more than 19% of its value. Looking to the fourth quarter, Meta said it expects revenue of between $30 billion and $32.5 billion, the midpoint of which is below Wall Street’s forecast of $32.2 billion. It’s also facing intense competition from rival apps such as TikTok. reported revenue growth below expectations and saw its stock plunge more than 25%.Īdding to Meta’s ad woes, the company is also faced with challenges around Apple Inc.’s iOS privacy update that makes it more difficult to deliver targeted ads to that company’s users. and Alphabet revealed shrinking demand for ads, with the latter reporting that YouTube’s revenue declined for the first time since it started disclosing that information. Meta’s disappointing results come at a time when other social media firms and ad-reliant companies are struggling too. We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.” “While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. “Our community continues to grow and I’m pleased with the strong engagement we’re seeing driven by progress on our discovery engine and products like Reels,” said Meta founder and Chief Executive Mark Zuckerberg (pictured). However, these numbers were more or less flat compared to the prior quarter. Monthly active users meanwhile came to 2.96 billion, up 2%. ![]() ![]() ![]() It said that 1.98 billion people use at least one of its applications every single day, up 3% from a year ago. The social media giant did at least report increased user growth across its platforms, which include WhatsApp, Messenger and Instagram. As for revenue, Meta reported $27.71 billion, just above the analyst consensus of $27.38 billion but down 4.5% from the same period last year. Net income for the period came to $4.395 billion, down from $9.19 billion a year ago. Meta reported earnings before certain costs such as stock compensation of $1.64 per share, well off Wall Street’s expected $1.89 per share. have reported a downturn in advertising in the past week or so. The results underscore the big challenges faced by ad-reliant technology platforms amid a weakening economic climate that’s pushing brands and marketers to spend less. took another beating today after posting third-quarter results that missed expectations and offering weak guidance. ![]()
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