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Meta set to report fourth-quarter earnings after the bell

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Meta Platforms Inc. CEO Mark Zuckerberg (left) arrives at federal court in San Jose, California, USA, Tuesday, December 20, 2022.

David Paul Morris | Bloomberg | Bloomberg | Getty Images

meta The company is reporting fourth-quarter earnings on Wednesday as it seeks to reverse a decline that pushed its share price down 64% last year.

Here’s what analysts expect:

  • Earnings: $2.22 per share, according to Refinitiv
  • Earnings: Refinitiv estimates $31.53 billion
  • Daily Active User (DAU): $1.99 billion expected, according to StreetAccount
  • Monthly Active User (MAU): $2.98 billion expected, according to StreetAccount
  • Average Revenue Per User (ARPU): $10.63 Estimated According to StreetAccount

Meta Sales Expected to Decrease for Third Consecutive Quarter, Highlighting Challenges Facing Social Media Companies as Economic Uncertainty Causes Businesses to Cut Digital Ad Spend and Pause Campaigns has become

Analysts expect Facebook’s parent company to report a revenue decline of more than 6% in the fourth quarter, predicting another quarterly decline before growth begins to pick up later this year.

Equity markets began to recover in January from a difficult 2022, but the economic outlook for 2023 remains fairly bleak, and the online advertising market may continue to struggle. According to a recent Cowen survey of 50 ad buyers, companies plan to increase their ad spend by only 3.3% in 2023.

Snap reported on Tuesday 4th quarter earnings It missed quotes and caused stocks to tumble in long trading. The company also said in an “internal forecast” he expects first-quarter earnings to decline by 2% to 10%.

While Snap is much smaller than Meta, it faces the same challenges, including slowing online ad spend, increasing competition from TikTok, and weakening targeted advertising. Apple 2021 iOS Privacy Update. alphabet When Amazon collect the revenue report from major online advertising platforms on Thursday, followed by Pinterest next week.

November, Meta Said As part of its cost-cutting plan, it will lay off more than 11,000 people, or 13% of its workforce.

“We are also taking a number of additional steps to become a leaner, more efficient company by reducing discretionary spending and extending the hiring freeze through the first quarter,” said the CEO. says. Mark Zuckerberg said in letter to employees At the time.

The last year was also marred by Zuckerberg’s costly effort to sell Wall Street. pivot the company To the world of the metaverse that has not yet developed. Zuckerberg said the metaverse, which includes virtual and augmented reality technology, could be the next major way people interact.

Investors fear the company is focusing too much on futuristic initiatives, even as its core advertising business struggles to regain growth. Meta’s Reality Labs division, home of his Metaverse ambitions, lost nearly $9.4 billion in his first three quarters of 2022.

Analysts expect Reality Labs to post fourth-quarter revenue of $715.1 million and an operating loss of $4.36 billion, according to StreetAccount. Meta said last quarter that “Reality Labs’ operating loss in 2023 will increase significantly year-over-year.”

look: Snap shares plummet on weak earnings

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