Meta Earnings Eyed as Tech Stocks Plummet - Will Facebook Get the Netflix Treatment

Traders should pay attention to advertisement revenue growth and outlook commentary, but more importantly daily active users’ numbers. In Q4 2021, Facebook's DAUs stood at 1.929 billion, up 5% year-over-year, but down 0.1% quarter-over-quarter. The markets did not like this sequential decline and the stock price plunged more than 25% the day after the company released its financial statements with this information.

Looking ahead, if DAUs do not stabilize and retreat more than expected in the wake of Russia's decision to ban Meta products in the country, FB stocks could suffer, rivaling thelast week, when the streaming service's shares sank more than 35% after announcing a loss of 200,000 subscribers and issuing weak guidance.

For a long time, tech darlings have commanded higher valuation multiples than the broader market due to expectations that they could continue to deliver strong earnings growth to shareholders regardless of the economic environment, but if their fortunes begin to change, investors may think twice about paying a premium to own their stocks.

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Facebook earnings beat sends Meta stock soaring, but sales hit slowest growth in a decadeFacebook Meta Platforms Inc. is the latest tech giant to feel an economic pinch. On Wednesday, it reported its slowest sales growth in a decade and issued... I think it's best people focus more on their own lives rather than be bothered about what other's are doing based on the pics they upload on Facebook, their rants and raves, etc. It's just too much unnecessary distraction. Word must have gotten out that Elon is taking over Fakebook next Let ‘em pump it 25% tomorrow! Easy short.
Source: MarketWatch - 🏆 3. / 97 Read more »