A Mega, Meta Flop So Far? Facebook’s Metaverse Business Lost $10 Billion Last Year And Ticked Off Wall Street. 

FILE - Facebook employees take a photo with the company's new name and logo outside its headquarters in Menlo Park, Calif., on Oct. 28, 2021. Meta, the company that owns Facebook, Instagram and WhatsApp, saw its stock plunge after-hours Wednesday, Feb. 2, 2022, after reporting a rare decline in its fourth quarter profit due to a sharp increase in expenses. (AP Photo/Tony Avelar, File)

Mark Zuckerberg might want to strap on a VR headset and spend some time in his metaverse if his next earnings call goes as bad as his most previous one did. 

Facebook delivered Wall Street some pretty grim news Wednesday, and their stock price got crushed because of it, dropping more than 20% in after-hours trading.

Here are some of the lowlights of what they reported. 

Earnings per share came in at $3.67, missing the mark of $3.84 investors expected. 

Revenue was over $200 million off the mark.  It was reported at $33.67 billion, off from the $33.4 Wall Street wanted. 

So what’s the problem? According to Facebook, ahem, I mean Meta, a combo of factors crushed them, including inflation and supply chain issues, the universal excuse many companies are using. 

Users of Facebook are also spending more time on products that don’t generate as much revenue.  Reels videos don’t generate the type of cash that their news feeds do. 

Here’s a fancy way of saying “we didn’t do very well” that the company included in a news release. 

“On the impressions side, we expect continued headwinds from both increased competition for people’s time and a shift of engagement within our apps towards video surfaces like Reels, which monetize at lower rates than Feed and Stories.” 

Unlike other tech giants like Alphabet, Apple, and Microsoft, who exceeded earnings projections in their most recent report, Facebook/Meta fell on their face. 

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please hover over that comment, click the ∨ icon, and mark it as spam. Thank you for partnering with us to maintain fruitful conversation.