![]() ![]() On Wednesday, Meta said third-quarter revenue declined 4.5 per cent from a year before, only the second time the company’s sales had declined – the first being last quarter. It is proving to be a hard sell when the company expects its already-falling revenue to be less than analysts expected, and costs to be more. “And I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded.” “I think we’re going to resolve each of these things over different periods of time,” he said. Mr Zuckerberg said he was confident that Meta’s largest bets in areas such as short-form video, business messaging and the metaverse were headed in the right direction – he just could not say for sure how big the payoff would be. Investors, who have already sent the stock down 61 per cent this year, so far are not buying it. ![]() Mark Zuckerberg continues to push his metaverse vision. On a call with investors, Mr Zuckerberg sought to justify Meta’s ballooning costs to fund its version of virtual reality, the metaverse, as well as the artificial intelligence fuelling major changes to its social networks. The sell-off added to the more than half a trillion dollars in value already lost this year. The company’s shares slumped almost 20 per cent in late trading, after it gave a disappointing quarterly revenue outlook on Wednesday (Thursday AEDT). Investors wiped about $US67 billion ($103 billion) from Meta’s stock market value. “We expect continued headwinds from both increased competition for people’s time and a shift of engagement within our apps towards video surfaces like Reels, which monetize at lower rates than Feed and Stories,” Wehner wrote.Los Angeles | Meta Platforms chief executive Mark Zuckerberg has asked investors for patience with the social media giant’s swelling investments in unproven bets at an already-challenging time for digital advertising companies. Meta CFO David Wehner warned that its business would be impacted on both the impressions and the pricing side. “ Our ad system and service are not tuned to the new formats,” Zuckerberg added, noting it creates a “near-term headwind” but should clear in the medium term. “We have made successful transitions before. “While we are going through a transition, we are optimistic,” COO Sheryl Sandberg added, citing the shift to mobile, and the move from newsfeed to stories. ![]() “ TikTok is so big a competitor already, and also continues to grow at a very fast rate off of a very large base.” “People have a lot of choices for how they want to spend their time, and apps like TikTok are growing very quickly,” he said, adding that the shift to shortform video will impact the company’s ad business. It is growing very quickly, it is already the biggest contributor to engagement growth on Instagram.” “ Reels and shortform video overall are very engaging. “It is clear that shortform video will be an increasing part of how people consume video going forward,” Zuckerberg said, adding that the company plans to adjust its news feed and stories to emphasize short videos. Instead, he cited shortform video as a 2022 priority, specifically citing the success of Facebook’s TikTok-esque offering Reels. 'Bachelorette' Alum Josh Seiter Says False Death Post Was Result of Instagram HackĪs it relates to the metaverse, Zuckerberg said that “we are focused on the foundational hardware and software that is required to build an immersive internet,” but noted that 2022 is still early days, and won’t see any major updates to the metaverse strategy. But it missed Wall Street expectations, sending the stock plunging nearly 20 percent after hours.Įven as its daily active users rose by 5 percent to 1.93 billion year over year, that growth was the slowest in recent memory, and the company warned that the rest of the year is shaping up to be a choppy one as it deals with “macroeconomic challenges” and continues its long-term strategic shift “towards building the metaverse,” per CEO Mark Zuckerberg. Meta Platforms Inc., which was previously known as Facebook, delivered record fourth quarter revenues of $33.7 billion, and annual revenues of $118 billion Wednesday.
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