The market capitalization of Meta (formerly Facebook) has fallen almost 25% in the post-trade session following the release of its Q4 2021 report.
CNBC has reported that investors were shocked by EPS ($3.67) and the forecast for revenue in January-March ($27 billion-$29 billion) below market expectations of $3.84 and $30 billion, respectively.
The metrics of the number of active users were also quite disappointing: both daily (an anti-record was set) and monthly, with the exception of the indicator of revenue attributable to each account.
The company believes that the deterioration in operating performance is due to a change in privacy rules in Apple’s iOS and macroeconomic problems. In particular, the increasing inflation and supply chain challenges have had a negative effect on the budgets of advertiser. The reorientation of users to less monetized products, including the Reels service competing with TikTok, were also affected.