Meta platforms fell 21% in front of the market and was reported at US $254 as of press time. The financial performance was lower than expected and was lowered by a number of investment banks.
previously reported
Suddenly burst! What happened when the 6 trillion technology giant plummeted by 22%? Sudden storm, the whole sector collapsed!
Another technology giant has collapsed!
After the release of the financial report, meta, Facebook's parent company, plunged 22% after hours. Metauniverse has not been able to save meta at present, and this business suffered a huge loss of 65 billion last year.
The concept of meta universe also collapsed along with meta, and social media giants also fell sharply. Twitter fell 8% after hours and snap fell 16%.
The NASDAQ futures were also brought to an end, falling by more than 2% shortly after the opening.
"yuanuniverse" business suffered a huge loss of 65 billion last year giant meta plunged 22% after hours
After Wednesday's US Eastern time, meta, a technology giant and leader in the concept of meta universe, released its financial results. This is the first financial report since it announced the transformation of metauniverse and renamed meta by Facebook.
The change of Apple's privacy policy has a negative impact on its advertising business, and the meta universe business has obviously failed to make a performance contribution to meta in the short term, which makes meta's financial report fall short of market expectations.
After the release of the financial report, the market value of meta with a market value of 6 trillion yuan plunged by more than 22% after hours. According to the estimation of the decline of 22.65%, its market value evaporated by about 207.441 billion US dollars, equivalent to about 1.32 trillion yuan.
According to its financial report, in the fourth quarter of last year, meta platforms achieved a revenue of US $33.67 billion, slightly higher than the market expected US $33.409 billion; Earnings per share was $3.67, lower than the market expected $3.84.
In terms of user data, the daily living users (dau) of meta reached 1.93 billion in the fourth quarter, slightly lower than the 1.95 billion expected by the market; Monthly live users (MAU) reached 2.91 billion, which was also lower than the 2.95 billion expected by the market.
Looking to the future, the performance guidance given by meta expects its first quarter revenue to be between $27-29 billion, lower than the market expectation of $30.25 billion.
Meta said the company was affected by a variety of factors, including soaring inflation, changes in Apple's privacy policy, potential supply chain disruptions for advertisers and macroeconomic challenges.
In addition, the losses caused by meta's "meta universe" business (referred to as "reality labs" in the financial report) are still expanding. In the whole year of 2021, the loss scale of this business reached US $10.193 billion, about 65 billion yuan. In the three years from 2019 to 2021, meta's yuan universe type business suffered a total loss of more than US $21.32 billion, equivalent to about RMB 135.6 billion.
However, the revenue of yuancosmic business has increased significantly. In the fourth quarter of last year, the business realized a revenue of US $877 million, a month on month increase of 57% and a year-on-year increase of 22%. In the whole year of 2021, the business achieved revenue of US $2.274 billion, only US $1.139 billion in the same period of 2020 and US $500 million in 2019.
Kim Forrest, chief investment officer of bokeh capital, pointed out that smart investors know that meta's new business direction means new expenditure. Since meta universe has no clear definition at present, it means that meta may need to spend "tons of cash".
Pedro palandrani, an analyst at global x, believes that meta's traditional business deserves more attention at present. He said that metauniverse is a long-term story. In the short term, investors pay more attention to how meta responds to the change of Apple's privacy policy, how to achieve a breakthrough in e-commerce business, and how to realize revenue through messenger and short video reels.
all social giants collapsed, plunging by up to 16% the opening of NASDAQ futures plunged
After meta's latest results were released, the market recognized that Apple's privacy policy had a great impact on social media giants, because such giants mainly rely on precision advertising for profit. After U.S. stock market trading on Wednesday, technology stocks, like meta, with advertising revenue as an important source of revenue, also fell a lot.
Snap once plummeted 16% after hours.
Pinterest fell more than 9% after hours.
Twitter fell 10% after hours.
So many social technology giants plummeted after hours, driving the NASDAQ futures also plummeted.
This morning, the NASDAQ futures fell by more than 2% shortly after the opening, and the S & P 500 futures also fell by 1%.
Earlier, Apple released an update to IOS 14.5, the iPhone operating system, in April last year. When users open the application, the system will ask whether they want to be tracked.
The new privacy policy restricts the access of third-party applications to personal data on IOS operating system, which will also greatly affect the sending of personalized advertisements.
Previously, the third quarter performance report of 2021 released by snap showed that the management believed that the change of Apple's privacy policy was the reason for its poor performance. "Due to the weakening effect of advertising, advertisers want to spend their money elsewhere."
Meta also warned that there would be many major uncertainties in the fourth quarter, including changes in the privacy rules of Apple's operating system.
Apple's move has also triggered a lot of controversy. Some people believe that Apple's Xinzheng is to promote its own advertising service - Apple search ads. Last December, the Polish Office of competition and consumer protection (uokik) issued a statement saying that the agency launched proceedings against apple to understand whether Apple's new privacy and personal data policies on IOS devices harm competition fairness.
the whole concept of the meta universe "collapsed"
When the leading meta fell sharply after hours, the after hours stock prices of many yuan universe concept stocks were also falling.
Roblox fell more than 7% after hours.
Cloudflare once fell more than 4% after hours.
Block fell nearly 7% after hours.
PayPal plunged 24% Google soared 870 billion
PayPal, also a meta universe concept stock, also performed poorly, falling more than 26% in the session.
Earlier, PayPal released its latest financial report after hours on Tuesday, and its quarterly net profit was halved.
Shortly after the opening of U.S. stocks on Wednesday, its share price started the diving mode. The decline narrowed towards the end of the trading, and finally fell by 24.59%. The market value evaporated by about 50.491 billion yuan, or about 321.1 billion yuan.
The overall earnings exceeded expectations and Google, which announced its share split, rose sharply. On Wednesday, Google a soared 7.52% and its market value soared $137 billion, or about 871.4 billion yuan.
Google strongly supported us stocks to close higher
Late at night, American technology rose and fell. Apple Rose 0.70% and Tesla fell 2.75%.
Amazon fell 0.38%, Netflix fell 6.05%, Microsoft rose 1.52% and Google a rose 7.52%. Qualcomm rose 6.25%, amd rose 5.12% and NVIDIA rose 2.45%.
The strong rise of Google supported the close of the three major stock indexes of US stocks. As of the close, the S & P 500 index rose 0.94% to 4589.38; The NASDAQ index rose 0.50% to 14417.55; The Dow Jones index rose 0.63% to 35629.33.
In addition, the less than expected latest employment data also eased people's concerns about the Fed's accelerated tightening policy, which was conducive to the rise of US stocks.
According to the data released by ADP Research Institute on Wednesday, the number of ADP employees in the United States decreased by 301000 in January, expected to be 184000, and 807000 in December. This decline is the largest since the outbreak of the epidemic and the first reported decrease in employment since December 2020. This means that under the influence of Omicron, the recovery of the U.S. job market still faces many challenges.
major Chinese concept stocks rose and fell
On February 2, popular Chinese concept stocks rose and fell, Mingda Jiahe rose 35.56%, Liandai technology rose 17.51%, Lixiang education rose 16.74%, Shanggao rose 13.24% and magic line rose 8.46%; In terms of decline, Genxi biology fell 14.37%, Tianjing biology fell 11.65%, Hongen education fell 11.36%, interesting headlines fell 10.59% and auto home fell 9.92%. China concept new energy vehicle stocks rose and fell, with Weilai automobile falling 4.23%, Xiaopeng automobile falling 1.59% and ideal automobile rising 0.77%. (source: China Fund News)
