Billions in market cap wiped out after first quarterly Meta report misses expectations
Shares of Facebook parent Meta fell after markets closed on Wednesday following a disappointing quarterly report, the first since CEO Mark Zuckerberg announced the name change.
The stock was strong at $323 per share when markets closed at 4 p.m. EST, but crashed to $249 half an hour later for a loss of nearly 23%. Within the first eleven minutes of after-hours trading, Meta’s $16 billion market capitalization had been wiped out.
What triggered the sell-off was Meta’s quarterly report showing declines in revenue, earnings per share, and daily and monthly active user counts relative to investor expectations.
While investors expected about $30.15 billion, Facebook’s numbers showed between $27 billion and $29 billion, CNBC reported, citing a Refinitiv survey of market analysts. According to the same source, earnings per share came in at $3.67, below the expected $3.84.
The number of daily active users (DAUs) came in at 1.93 billion, lower than the expected 1.95 billion, while monthly active users (MAUs) also exceeded expectations of 2.95, ending at 2.91 billion, according to Street Account.
This is the first quarterly report since Zuckerberg announced that his social media giant would change its name to Meta, to better represent its focus on the upcoming “metaverse” and encompass existing Facebook, Instagram and WhatsApp brands.
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