{"id":10118,"date":"2022-02-03T19:26:30","date_gmt":"2022-02-03T19:26:30","guid":{"rendered":"http:\/\/TheNextWeb=1379491"},"modified":"2022-02-03T19:26:30","modified_gmt":"2022-02-03T19:26:30","slug":"behind-the-numbers-metas-nightmare-on-wall-street","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=10118","title":{"rendered":"Behind the numbers: Meta\u2019s nightmare on Wall Street"},"content":{"rendered":"\n
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If Meta<\/a> thought a rebrand would put the nightmare of 2021 to bed, the company was in for a rude awakening on Thursday.<\/span><\/p>\n

The company was hit by the worst one-day slump in stock-market history.<\/span> But that unwelcome landmark merely scratches the surface of Meta\u2019s problems.<\/p>\n

To truly capture the turmoil, we need to dig into the numbers that are spooking investors.<\/p>\n

$200 billion: Meta\u2019s loss in value<\/span><\/h2>\n

After Meta reported a rare decline in quarterly profit on Wednesday, shares in the company plummeted by more than 25%.<\/p>\n

The one-day crash wiped $200 billion off Meta\u2019s valuation. That\u2019s the biggest-ever collapse in market value for a US company.<\/p>\n

Analysts attributed the meltdown to several factors: struggles to attract young users, competition from TikTok, Apple\u2019s new privacy changes, and the metaverse<\/a>.<\/p>\n

1.929 billion: Facebook\u2019s active users<\/h2>\n

Facebook\u2019s<\/a> daily active users (DAUs) dropped from 1.93 billion in the third quarter of 2021 to 1.929 billion in the fourth.<\/p>\n

It\u2019s a tiny dip on paper, but it marks a grim milestone: the app\u2019s first-ever quarterly decline in DAUs.<\/p>\n

User growth was already stalling in the US and Europe, but the biggest losses were recorded in Africa and Latin America. That\u2019s a troubling sign for Facebook\u2019s plans to expand beyond its main markets.<\/p>\n

$10 billion: Meta\u2019s loss on the metaverse<\/h2>\n

One factor behind Meta\u2019s disappointing profits is its vast investment in the metaverse.<\/p>\n

The company revealed on Wednesday that Reality Labs \u2013 its division for the metaverse \u2013 lost more than $10.19 billion in 2021.<\/p>\n

This comes as no surprise to Mark Zuckerberg, however. The Facebook founder had planned to spend at least $10 billion on the metaverse in 2021 \u2013 and warned<\/a> it wouldn\u2019t be profitable \u201cany time in the near future.\u201d<\/p>\n

Another $10 billion: Cost of Apple\u2019s iOS changes to Meta<\/h2>\n

Meta loses wads of $10 billion like I lose socks in the wash. After blowing that sum on Reality Labs, the company expects to take a similar hit from Apple\u2019s App Tracking Transparency<\/a>.<\/p>\n

The new feature lets iOS users stop apps from tracking them across the web. That\u2019s bad news for Meta\u2019s business, as it makes ad targeting less effective.<\/p>\n

The company said on Wednesday that it will lose around \u2014 you guessed it \u2014 $10 billion in ad revenue this year as a result of the feature<\/p>\n

$24 billion: The drop in Zuck\u2019s wealth net<\/h2>\n

Meta\u2019s stock crash has burned a big hole in Mark Zuckerberg\u2019s wallet. Around $24 billion was wiped off his net worth when the share price collapsed.<\/p>\n

But save your tears, my dears. Despite this being among the biggest ever single-day drops in wealth, Zuckerberg remains one of the richest people of all time.<\/p>\n

There\u2019s also still life left in Zuckerberg\u2019s baby.<\/p>\n

Meta was expecting early losses from the metaverse investment. The company still has vast reserves of cash, a huge built-in user base, the Oculus VR headsets, and a name that gives the illusion of owning the metaverse<\/span><\/p>\n

It might have been a dreadful week for Meta, but the company is a long way from dead.<\/span><\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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