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Tag: FB Stock

  • Meta Platforms Inc. (FB) Soars After Hours on Latest Earnings that Gave s Sigh of Relief to Investors

    The Facebook parent company, Meta Platforms Inc. (FB) posted mixed earnings on April 27, after the bell. The company’s Q1 fiscal 2022 earnings gave a sigh of relief to the fearful investors despite a revenue miss. Thus, the stock jumped up in the after-hours to add 18.34% at a heavy volume. 15.46 million shares had the stock trading at a price of $207.04 in the session. This surge came after a decline of 3.32% in the prior session which had the stock valued at $174.95 a share. Moreover, the regular session’s downfall registered a new 52-week low as well.

    Source: iStock

    What Does the Earnings Report Say?

    The company’s earnings while a miss on some was a beat on other items. The company’s revenue rose by just 7% YOY to $27.9 billion in the quarter. Analysts were expecting the company to report revenue of $28.3 billion which thus missed the expectations.

    On the other hand, giving a positive surprise was FB’s earnings. Despite the 21% decline in net income on the heels of a massive increase in total costs and expenses, the earnings were better than expected. The net income decreased from $9.49 billion in Q1 2021 to $7.46 billion in 2022’s first quarter. However, earnings of $2.72 per share beat the analysts’ expectations of $2.56 a share for the quarter.

    Additionally, the YOY user growth slowed down as key metrics rose by just 3%-6% against the first quarter of 2021. But another surprising factor that showed signs of life for the giant was growth in the number of daily active Facebook users. Marking a turnaround from the first-ever decline in users last year, the daily active users grew to $1.96 billion in Q1 2022. While the increase was just 4% YOY it was still much better than a decrease.

    FB’s Future Outlook

    Given the major shift the company is undergoing as it moves towards metaverse on top of the multiple challenges (competition, antitrust from Congress, etc), FB’s outlook also remained shy of expectations. The company’s Q2 guidance has the revenue pegged at $29 billion at the midpoint, which is below estimates of $30.7 billion.

    A Quick Overview of the Market

    On Tuesday, Nasdaq closed at its worst level in over a year on tech earnings fear amid implications of inflation and China lockdowns on Covid-19. But Wednesday brought a sigh of relief as the tech giants helped the composite inch higher amid mixed earnings. While Alphabet was disappointed, Microsoft and Meta rallied.

    Conclusion

    Despite mixed results, investors celebrated FB over signs of life as the company’s earnings surpassed estimates while daily users recovered.

  • Meta Platforms Inc. (FB) stock Gloomy After Hours on Disappointing Earnings & Outlook

    On February 02, Meta Platforms Inc. (FB) declared its results for Q4 and full-year 2021, along with future outlook and ticker change. Consequently, the stock nosedived in the after-hours.

    In anticipation of the earnings release, investors flocked towards the stock on Wednesday. The regular session saw 277% of its average volume at 58.46 million shares. FB was able to gain 1.25% during regular trading to close the session at $323.00. Following the announcement, the stock plunged by 22.89% at an after-hours volume of 24.52 million. Thus, FB was trading at $249.05 per share in the after-hours on Wednesday.

    The global social technology company, Meta Platforms Inc. has a market capitalization of $887.38 billion. Currently, the company has 2.37 billion shares outstanding in the market.

    FB’s Financial Results

    In Q4 and fiscal 2021, the company generated total revenue of $33.67 billion and $117.92 billion, respectively. Comparatively, the total revenue was $28.07 billion in Q4 2020 and $85.96 billion in fiscal 2020. This shows a YOY change of 20%.

    Moreover, FB had a net income of $10.28 billion in Q4 2021 and $39.37 billion in fiscal 2021. This compares to $11.21 billion and $29.14 billion in Q4 and fiscal 2020, respectively. Resultantly, the company had EPS of $3.67 and $13.77 in Q4 and fiscal 2021, respectively. Furthermore, analysts were expecting EPS of $3.85 for Q4 of 2021.

    Additionally, Family daily/monthly active people and Facebook’s daily/monthly active users showed a below 10% increase YOY in December 2021.

    Future Outlook

    FB expects total revenue for Q1 2022 to be between $27 and $29 billion, with a YOY increase of 3-11%.

    In addition, the company also revised its total expenses guidance from $91-97 billion to $90-95 billion for 2022.

    Ticker Symbol Change

    Based on the company’s recent name change from Facebook to Meta, the company has decided to change its ticker as well. Therefore, in the first half of 2022, FB’s Class A common stock will commence trading under the ‘META’ symbol.

    FB’s New Segment

    Recently, the company implemented a new financial reporting structure in a devised segmented way. The new segmented structure comprises two main segments: Family of Apps (FoA) and Reality Labs (RL).

    The FoA segment includes Facebook, Instagram, Messenger, WhatsApp, and other services.

    RL segment consists of augmented and virtual reality-related consumer hardware, software, and content.

    Conclusion

    While the company’s previous quarter/year’s results were already unimpressive with mild growth, the gloomy outlook fueled investors’ disappointment. As a result, the stock took a hit in the after-hours on Wednesday.

  • What Challenges Have Google And Facebook Been Facing And What Can Investors Expect From The Stocks?

    What Challenges Have Google And Facebook Been Facing And What Can Investors Expect From The Stocks?

    Texas Attorney General Ken Paxton filed an antitrust lawsuit against Google (Alphabet Inc.) on Wednesday, based on a bold claim: Google colluded to exploit online advertisement markets with a major rival, Facebook Inc. The global online ad sales business is dominated by these two firms.

    “Any cooperation between two competitors of this magnitude should raise strong concerns about compliance with antitrust laws.” the Texas complaint says. Google denied the claim, and Facebook refused to comment.

    Obviously, this may entail significant liability on the part of the antimonopoly authorities if the charges are verified.

    The lawsuit relates to an automated advertising technology that guides an online ad to digital advertising. It is intended to raise the fees for putting advertisements that web services, such as news agencies, will earn. The more apps come from a wide variety of sources, the higher the cost.

    In advertisement sales, Google is accused of developing software that gives the social network Facebook advantages. Google may have inflated the cost of ads for its other users due to the proposed contract.

    To judge the prospects of the trial, it is too early. The arrangement referred to in the lawsuit could be presented as a cooperative agreement between the two Internet giants in which Facebook receives from Google services that are required for the functioning of the advertisement network if the specifics of the charges are inconclusive.

    It is very likely that the proceedings will affirm Google’s stance, according to the company, that during the ad sales Facebook does not receive any special data.

    Shares of both businesses respond with high uncertainty, as on Wednesday, nine states entered the Texas lawsuit. More than 80% of Alphabet Inc’s (GOOGL) revenue is accounted for by Google’s ad sales. The latest financial report by Alphabet shows that digital advertising revenue is more than $37 billion per year. Stocks will remain under pressure, but despite this the target of Google (GOOGL) stock will be to hit $1925 per share in the medium term, and Facebook (FB) is $300 per share in the medium term.

  • Facebook (FB) to refund certain advertisers after miscalculating data on the performance

    Facebook (FB) to refund certain advertisers after miscalculating data on the performance

    Since falsely reporting one of the indicators of the possible efficacy of their ads over the span of a year, Facebook (FB) is paying back some advertisers.

    Between August 2019 and August 2020, the corporation’s “conversion lift” tool experienced a glitch that allegedly affected thousands of advertisements.

    In September, Facebook patched the mistake and is now providing a loan to consumers “significantly affected” by the error.

    According to an explanation of the tool on Facebook’s website, conversion lift lets involves systematically how advertisements contribute to revenue, using a “gold-standard methodology” that connects advertising on Facebook sites like Instagram, to market results.

    The free tool presents advertising for different evaluation and control categories and then compares each revenue conversion. Then an advertiser will determine how much to invest in the social network depending on the outcome of the analysis.

    But marketers, according to a post on the AdExchanger website, were only alerted to the mistake this month.

    We found a technological error that impaired some conversion lift testing when making changes to our measuring goods. We have resolved this and are partnering with advertisers that have affected studies. A “tiny proportion” of advertisers were affected, and according to the firm, they would get a “one-time credit.”

    It’s not the first time that Facebook has confessed to reporting errors. In September 2016, it said it misjudged the total time users spend watching video ads over a two-year period, and a study showed in 2017 that in some U.S. states and counties, Facebook appeared to attract more people than official demographic figures said existed in those regions.

    Facebook is a global platform for ads, whose revenue comes mainly from smaller advertisers. In the q3, its ad sales hit $21.2 billion, up 22 percent on the year before and it expects holiday demand in the 4th quarter to boost ad revenue.