This is the ace up the sleeve that could spike both top and bottom lines once monetized. Its WhatsApp application hasn't been monetized yet but sports more than two billion daily users. Although Reels has crossed the $1 billion annual run rate, the worth rate of monetization is much slower than Feed or Stories resulting in a $500 million headwind next 12 months to 18 months. Reels has grown to over 140 billion clips across both Facebook and Instagram, up 50% in six months. Instagram has over two billion monthly active users (MAUs). Their flagship Facebook saw its highest-ever traffic of nearly 2 billion people using its platform daily. While social media networks like Twitter, Pinterest (NASDAQ: PINS) and Snap report their metrics in the millions, Meta Platform's metrics are reported in the billions and engagement remains robust. Meta shares are providing a bargain opportunity for investors that have been waiting for a pullback. However, the strong engagements underscore that Meta is not becoming the Myspace of social media any time soon. Reality Labs contributed to the 19% jump in Research & Development expenses. In fact, Zuckerberg cautioned that the losses in its Reality Labs segment which is dedicated to the Metaverse would continue to grow "significantly" in 2023. Investors expect CEO Mark Zuckerberg would take heed and pump the brakes on its spending, but that's not even in the equation. Ad spending has been falling as evidenced by the results for Snap (NASDAQ: SNAP) and Alphabet (NASDAQ: GOOGL), which saw its YouTube ad sales fall (-2%) in the last quarter. Market didn't mind the money-losing investment when indexes were hitting highs in a raging bull market, it is extremely upset as the rate of spending continues higher in light of weakening macroeconomic headwinds in a bear market. Perhaps the biggest concern driving shares lower is the unfettered determination of CEO Mark Zuckerberg to literally go all in on Metaverse investments. Engagements were strong across all its applications. dollar make a $1.79 billion impact on revenues and is expected to make a (-7%) impact in the next quarter. While the earnings miss has investors concerned, the revenues came in better than expected by nearly $300 million. Social media developer Meta Platforms (NASDAQ: META) stock took a (-24%) cliff dive after its Q3 2022 earnings miss.
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