Shares of Facebook parent Meta Platforms Inc. plunged more than 20% in extended trading Wednesday after detailing a holiday-earnings miss, weak guidance and intensifying competition.
Meta also missed in its first-quarter revenue forecast, which calls for sales of $27 billion to $29 billion, while analysts were forecasting $30.2 billion. In the release, Facebook executives blamed increased competition from services such as TikTok, as well as changing consumer behavior toward Facebook’s TikTok-like offering and changes Apple Inc. AAPL, +0.01% made to its mobile operating system.
Chief Operating Officer Sheryl Sandberg also referred to “headwinds” associated with Apple’s changes during a conference call late Wednesday, and Chief Financial Officer David Wehner put a price tag on it, estimating the Apple “substantial headwind” will cost Meta an estimated $10 billion in 2022 when pressed by an analyst during the call. He also expressed concern over future versions of iOS and regulatory issues in the U.S. and abroad.
“It’s clear that there are many big roadblocks ahead as Meta faces tough new competition for ad revenue such as TikTok, and as it contends with ongoing ad targeting and measurement challenges from Apple’s iOS changes,” Insider Intelligence principal analyst Debra Aho Williamson said in an email message.
I'd be happy if it went below 0
Zucky goes face-to-face with whistleblower Frances Haugen
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