The “explosion” of the “meta platforms” four seasons newspaper set a new record of one-day market value evaporation.
On Thursday, the three major indexes of US stocks closed down, with the Dow down 1.45%, the NASDAQ down 3.74% and the S & P 500 down 2.44%.
The global social giant meta (Facebook) released its fourth quarter financial report of 2021, which was significantly lower than the market expectation. Under the influence of this news, meta’s share price fell by more than 26% and its market value evaporated by more than 1.5 trillion yuan, which is equivalent to a Industrial And Commercial Bank Of China Limited(601398) market value lost overnight.
global social giants fell 26%
Facebook released its first quarterly financial report since its parent company was renamed meta platforms in October last year. Meta’s revenue in the fourth quarter of last year increased by 20% year-on-year, slightly exceeding expectations; The year-on-year decline in earnings per share doubled compared with market expectations, which is the first decline in net profit since the second quarter of 2019; Key user indicators were poor and worse than expected. More worrisome is the weak revenue guidance in the first quarter of this year. It is expected that the revenue may increase by 3% year-on-year, while Facebook’s revenue increased by 48% in the same period last year.
According to the specific financial data of meta, the company’s revenue in the fourth quarter of fiscal year 2021 was US $33.67 billion, slightly higher than the analysts’ expectation of US $33.43 billion, with earnings per share of US $3.67, lower than the expected US $3.84, and the number of daily users in the fourth quarter was 1.93 billion, lower than the analysts’ expectation of 1.95 billion; The number of monthly live users was 2.91 billion, lower than the 2.95 billion expected by analysts. The guidance for the first quarter of this year is also lower than expected. The company expects revenue of $27-29 billion in the first quarter, and analysts expect $30.25 billion.
Meta explained that due to the negative impact of high inflation and supply chain bottlenecks on advertisers’ budgets, the monetization ability of short video products preferred by users is weak compared with other mature functions.
Over the past decade, meta’s growth has been enviable: from 2013 to 1017, its share price rose for five consecutive years, and from 2019 to 2021, its share price rose for three consecutive years, showing a ten fold market in ten years. In 2012, the share price of the stock once fell below $18 and reached a high of more than $384 last year. Since then, meta has also become a global technology giant, with a market value of nearly 5.73 trillion yuan before the decline.
As the stock fell 26%, its market value fell back to about 4.2 trillion yuan, and 1.51 trillion yuan evaporated overnight. The latest total market value of Industrial And Commercial Bank Of China Limited(601398) was 1.59 trillion yuan and Contemporary Amperex Technology Co.Limited(300750) was 1.38 trillion yuan. In other words, meta is equivalent to the market value of one Industrial And Commercial Bank Of China Limited(601398) .
metauniverse is an expensive gamble
Meta, whose strategic focus has shifted to “meta universe first” and whose name has been changed, is precisely the drag caused by the meta universe business. Meta disclosed the financial data of FRL Department (reality labs, Facebook reality lab, including hardware, software and content related to AR and VR) including metauniverse strategy for the first time. The company expects that the investment in metauniverse will reduce the operating profit by about US $10 billion in 2021. From the performance of the whole year, Zuckerberg’s “Yuan universe business” achieved a revenue of US $2.27 billion and a net loss of US $10.19 billion (about 64.2 billion yuan) in 2021. The business lost US $4.5 billion and US $6.62 billion in 2019 and 2020 respectively.
More meta analysts said frankly that metauniverse is an expensive gamble. There is a view that meta’s share price plummeted, short-term negative A-share related concept sectors, but in the long run, the development of meta universe is still worth looking forward to.
Huatai Securities Co.Ltd(601688) believes that in the meta universe, high-quality content is still scarce, and there is a large market space for content production tools (game engines), end-user oriented works and IP. On the hardware side, the newly exposed magic leap 2 is equipped with 18 sensor cameras, Huatai Securities Co.Ltd(601688) believes that this trend is expected to continue. In the future, with the upgrading of data volume and interaction mode of meta universe applications, more kinds of sensors and controllers will be carried to head display, handle and other terminal equipment to continuously optimize the user’s immersive experience.
There are more than 90 yuan universe concept stocks in the A-share market. From the perspective of institutional attention, Perfect World Co.Ltd(002624) , Mango Excellent Media Co.Ltd(300413) , Thunder Software Technology Co.Ltd(300496) and other stocks are rated by more than 10 institutions. In terms of market value, the market values of Goertek Inc(002241) and Iflytek Co.Ltd(002230) are more than 100 billion yuan, and the market values of Lens Technology Co.Ltd(300433) , mango supermodel, Thunder Software Technology Co.Ltd(300496) and other stock markets are more than 50 billion yuan.
