Ground Report | New Delhi: Why Delete Facebook is Trending; Shares of Facebook parent Meta Platforms Inc. plunged more than 20% in extended trading on Wednesday after detailing a holiday profit loss, weak guidance and intensified competition.
Why Delete Facebook is Trending
Meta FB shares, +1.25% fell almost 23% in the extended session, which would wipe out more than $200 billion in market capitalization if the declines were to continue during the trading session on Thursday. With shares of Meta in free fall, other social media stocks took heavy damage: Shares of Snap Inc. SNAP, -4.72% fell 17% in after-hours trading on Wednesday, while Twitter Inc. TWTR, – 4.22% and Pinterest Inc. PINS , -8.93% were each down almost 10%. Snap is scheduled to announce its results on Thursday.
Meta (FB) gets almost all of its revenue from advertising ($32.6 billion), but the growing importance of non-ad revenue was on display with another ad in earnings. Facebook Reality Labs revenue was $877 million during the fourth quarter.
“I am encouraged by the progress we made last year in several important growth areas such as Reels, commerce and virtual reality, and we will continue to invest in these and other key priorities in 2022 as we work to build the metaverse,” said Meta CEO. Mark Zuckerberg in a press release about the results. They were the first Meta results since the old Facebook changed its name in late October to reflect its quest for “metaverse” technology.
Meta Platforms earnings unexpectedly fell 5% while revenues narrowly expired. The parent company of Facebook also lowered first-quarter revenue. FB shares plunged 23% in extended trading, marking a low of at least 11 months. That’s after rising 1.25% on Wednesday in reaction to Google’s earnings.
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