Home » Meta earnings preview: Here’s what to expect

Meta earnings preview: Here’s what to expect

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meta (meta) is set to report fourth-quarter 2022 earnings after the bell today, capping a tough year for Facebook’s parent company.

Here’s what analysts can expect from the meta closing out 2022.

Fourth Quarter Earnings – Estimated $31.65 billion

Advertising revenue – Estimated $30.86 billion

Adjusted earnings per share (EPS) – Expected $2.26

Facebook Daily Active User (DAU) – 1.98 billion

App Family Daily Active User (DAU) – 2.92 billion expected

Reality Lab operating loss – Forecast of -$3.99 billion

Meta, which also owns Instagram and WhatsApp, is about to have a very difficult year. In 2022, the company’s stock is down about 63%. This is as the social media giant battled increasing competition from his TikTok, high inflation and a sluggish digital advertising market.

In a Jan. 29 note to investors, Wedbush analyst Dan Ives said the slowdown in ad spending was particularly problematic as “digital advertising remains under pressure and shows signs of stabilizing.” said it would be. this week,

rival snap (snap) reported earnings yesterday, but the readthrough doesn’t look good for Meta.snap barely has met expectations for Wall Street earnings and DAU, hinting at a possible decline in earnings in the first quarter of 2023. Snap’s stock price plummeted about 13% following the report.

Meta Platforms CEO Mark Zuckerberg filed in federal court after attending the Facebook parent company’s defense of its acquisition of virtual reality app developer Within Inc. in San Jose, California, USA, December 20, 2022. Leaving. REUTERS/Laure Andrillon

Meta has many moving parts

Meta, quite simply, has a lot going on right now.For one, the company changed 2021, named after Facebook, signifies its commitment to the Metaverse, which has become costly and increasingly difficult to justify as the broader macro economy plummeted. has been proven.

Additionally, the company laid off 11,000 employees in November and is creating more jobs. reportedly still on the table.In addition, the company’s executive management has been reorganized substantially With longtime COO Sheryl Sandberg Formally I retired from the company in September.

The company is also defending the proposal at the same time. acquisition In an antitrust lawsuit filed by the Federal Trade Commission (FTC) in July, VR developer Within, the creator of the fitness app Supernatural. Announced in October.

For years, Meta has been bolstered by acquisitions (including the head of Instagram and WhatsApp), but the company is entering a new era where such high-value deals are harder to close.Meta CTO Andrew Bosworth Said In it, “If this deal doesn’t close in a timely manner, I’ll probably just walk away.”

Ally Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on her Twitter. @agarfinks and LinkedIn.

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