Feb 03, 2022 11:15:00

Finally, Facebook's number of users declines for the first time, stock price plummets by 20%

It turns out that the number of Facebook users, which has been increasing since its inception, has begun to decline for the first time. In response to this, the stock price of Facebook's parent company Meta temporarily recorded a decline of more than 20%.

Meta --Meta Reports Fourth Quarter and Full Year 2021 Results

https://investor.fb.com/investor-news/press-release-details/2022/Meta-Reports-Fourth-Quarter-and-Full-Year-2021-Results/default.aspx

Facebook-parent Meta (FB) Q4 2021 earnings
https://www.cnbc.com/2022/02/02/facebook-parent-meta-fb-q4-2021-earnings.html

On February 2, 2022, Meta released its fourth quarter and full-year financial results from October 2021 to the end of December. According to the first financial report since the company name was changed from Facebook, the company's sales increased 20% year-on-year to $ 33,671 million (about 3.85 trillion yen), while net income was the same period last year. It was 10,285 million dollars (about 1.17 trillion yen), a decrease of 8%.

Meta's after-hours trading stock fell more than 20% from the previous day's closing price following the announcement of well-than-expected results.

Of particular interest was the fact that Facebook's

Daily Active Users (DAU), which had been increasing almost consistently, showed a decline for the first time. According to the announcement, DAU in the fourth quarter of 2021 averaged 1,929 million, a slight decrease from 1.93 billion in the previous quarter. Looking at the breakdown of DAU, we can see that while it continued to increase in Asia and Europe, it started to decrease in North America and other regions, which led to a decrease in DAU worldwide.

Meta analyzes that the reason for the poor performance this quarter was due to multiple factors such as Apple's enhanced privacy and macroeconomic challenges. Another reason is that the axis of profit is shifting from high-return services such as feeds and stories to relatively low-return video services such as Instagram's Reels.

While the financial statements of major American IT companies are coming out, Meta, who announced the dull numbers, is in a situation of losing one person. On February 2, Google's parent company Alphabet announced good financial results showing that advertising revenue and other factors have made a big leap from the previous year, and Apple and Microsoft also reported that they were profiting more than expected in the market. ..

Google's advertising revenue for the fourth quarter of 2021 increased 33% year-on-year to $ 61.2 billion (about 7.3 trillion yen), and YouTube's advertising revenue increased 25.4% year-on-year to $ 8.63 billion (about 990 billion yen). ) And in great shape-GIGAZINE

by Niharb