Mark Zuckerberg, chief government officer of Meta Platforms Inc., left, arrives at federal court docket in San Jose, California, US, on Tuesday, Dec. 20, 2022.
David Paul Morris | Bloomberg | Getty Images
Meta reviews fourth-quarter earnings on Wednesday as the corporate tries to reverse a slide that pushed the inventory down by 64% final 12 months.
Here’s what analysts expect:
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- Earnings: $2.22 per share, in line with Refinitiv
- Revenue: $31.53 billion anticipated, in line with Refinitiv
- Daily Active Users (DAUs): 1.99 billion anticipated, in line with StreetAccount
- Monthly Active Users (MAUs): 2.98 billion anticipated, in line with StreetAccount
- Average Revenue per User (ARPU): $10.63 anticipated, in line with StreetAccount
Meta’s gross sales are anticipated to drop for a 3rd consecutive quarter, underscoring the challenges the social media firm faces as financial uncertainty leads companies to scale back digital advert spending and pause campaigns.
Analysts count on the Facebook guardian firm to report a income decline of greater than 6% for the fourth quarter, and so they’re projecting another quarterly drop earlier than development begins to tick again up later this 12 months.
While the inventory market began to rebound in January from a brutal 2022, financial forecasts nonetheless present a reasonably gloomy 2023, which may spell persevering with hassle for the web advert market. A current Cowen survey of fifty advert patrons discovered that corporations are planning to extend their advert spending in 2023 by solely 3.3%, which the funding financial institution stated is “the softest ad growth outlook we’ve seen in five years.”
On Tuesday, Snap reported fourth-quarter income that missed estimates, sending the shares tumbling in prolonged buying and selling. The firm additionally stated its “internal forecast” assumes a income drop within the first quarter of between 2% and 10%.
While a lot smaller than Meta, Snap faces a number of the identical challenges, together with a slowdown in on-line advert spending, elevated competitors from TikTok and weakened focused promoting attributable to Apple’s 2021 iOS privateness replace. Alphabet and Amazon will wrap up earnings reviews from the key on-line advert platforms on Thursday, adopted by Pinterest subsequent week.
In November, Meta stated it might lay off over 11,000 staff, or 13% of the workforce, as a part of the corporate’s plans to scale back prices.
“We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1,” CEO Mark Zuckerberg stated in a letter to staff on the time.
Last 12 months was additionally marred by Zuckerberg’s pricey effort to promote Wall Street on a plan to pivot the corporate in direction of the yet-to-be-developed world of the metaverse. Zuckerberg has stated the metaverse, which would come with digital actuality and augmented actuality applied sciences, may symbolize the subsequent main manner individuals work together.
The massive guess has pissed off buyers, who fear the corporate is placing an excessive amount of concentrate on a futuristic endeavor whereas its core advert enterprise struggles to revive development. Meta’s Reality Labs unit, house to the metaverse ambitions, misplaced practically $9.4 billion within the first three quarters of 2022.
Analysts count on Reality Labs to point out an working lack of $4.36 billion for the fourth quarter on income of $715.1 million, in line with StreetAccount. Meta stated final quarter that “Reality Labs operating losses in 2023 will grow significantly year-over-year.”
WATCH: Snap shares plunge on weak income
Source: www.cnbc.com”